State Bank of India, the country’s biggest lender,  reported its highest-ever quarterly net profit with its July-September net rising 67% to Rs 7,627 crore compared to a net profit of Rs 4,574 crore in the corresponding quarter of previous fiscal. SBI’s strong bottom-line growth was supported by double-digit growth in its net interest income (NII) and higher net interest margin (NIM), the bank said in a statement. Meanwhile, its asset quality also improved both sequentially and on an annual basis.

SBI’s net profit also got a boost from lower loan loss provisions, which fell 52% annually and 46.33% on quarter to Rs 2,699 crore in the September quarter.

SBI, which is banker to more than 40 crore Indians, reported NII of Rs 31,184 crore, compared to Rs 28,181 crore last year. 

Its NIM, a key profit metric for lenders, improved 16 basis points anually and 35 basis points sequentially to 3.50% in the reporting quarter, improving its profitability.

During the quarter, the lender made a provision of Rs 7,418 crore due to change in family pension rules, even as
regulator granted dispensation to amortise in 5 years.

Total deposits of the lender grew at 9.77% YoY– current account deposits grew by 19.20% y-o-y while saving bank deposits grew by 10.55% annually. The lender registered 6.17% growth in advances during the quarter, driven mainly by personal retail advances (15.17% yoy) and foreign office advances (16.18% yoy). Domestic advances growth stood at 4.61% yoy.

SBI’s asset quality also improved in the quarter. Its Net NPA ratio fell by 7 basis points annually to 1.52% while its gross NPA ratio declined to 4.90%, down 38 bps yoy.

As of 2:11 pm, SBI shares traded 3.20% higher at Rs 537.85 after hitting a record high of Rs 542.30 today, reacting to the strong set of numbers reported by the lender.