The country’s largest bank, State Bank of India (SBI), has beaten analysts and market forecasts by reporting a 15% rise in net profit to Rs 1,640.7 crore for the first quarter of this fiscal on the back of a 100% rise in non-interest income, reports the media.
The impressive growth in non interest income, which includes fees and commissions from various financial activities , coupled with a higher net interest income has more than made up for the mark-to market losses of Rs 1656.6 crore incurred during this quarter.
SBI, like several other banks, has been hit hard after interest rates started moving up during the second half of last year. As interest rates rise, the value of the bonds in the portfolio of banks depreciate, forcing banks to take into account such losses.