State Bank of India (SBI) has registered a fourfold increase in net profit at INR35.81bn ($474m) in Q4 ended March 2020 and its highest yearly profit in FY2019-20.

For FY2019-20, SBI recorded the highest yearly profit of INR144.88bn ($1.91bn) as compared to INR8.62bn ($114m) in the previous year.

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The record increase in profit is said to be a direct result of SBI’s stake sale in its subsidiaries like SBI Cards and SBI Life Insurance and also a dip in bad loans.

The sale of certain stakes in SBI Life Insurance business brought INR34.84bn in net profits in Q2 while the stake sale in SBI Cards and Payments Services brought INR27.31bn in net profits in Q4.

SBI also recorded an improvement in its gross non-performing assets (NPAs) ratio to 6.15%, compared to 7.53% previously.

SBI chairman Rajnish Kumar said: “Despite not so easy circumstances even before Covid-19, the bank has declared a record profit of INR144.88bn in FY20, which is the highest ever profit for SBI in its history.

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“We have consistently been able to improve our asset quality as well as the provision coverage ratio quarter after quarter.”

The Reserve Bank of India (RBI), the country’s central bank, has recently allowed the banks to extend the moratorium on repayment of term loans due to the Covid-19 pandemic.

SBI has reported that nearly 21% of its retail borrowers availed the three-month moratorium when it was introduced by RBI.

Regardless of the extension, nearly 82% of its borrowers have paid two or more instalments and about 92% have paid one or more instalments between March and May.

Kumar added: “The three-month period has just started but my feeling is that our numbers; (customers availing moratorium), would not be significantly different than what they were in the first three months. It may even improve in June-August period as we exit the lockdown.”