State Bank of India Reports 14% Profit Increase

State Bank of India reported a net profit of 230.38 billion rupees ($2.43 billion) for the second quarter ended September 30, marking a more than 14% increase from the 201.60 billion rupees earned in the previous year. The bank attributed this growth to strong loan demand from businesses, small and medium enterprises, and retail consumers seeking vehicle and housing loans.

Net interest income rose 14.7% year-on-year to 491.43 billion rupees. The bank's bottom line was further bolstered by a one-time gain of 72.88 billion rupees resulting from the sale of a nearly 6% stake in SBI Funds Management.

Additionally, the lender divested a 0.65% stake in the National Stock Exchange during its IPO. These specific gains were credited to a capital reserve rather than the profit and loss account.