State Bank of India (SBI) on Monday reported a whopping 55 per cent increase in net profit at Rs 6,504 crore for the quarter ended in June. This was the highest quarterly net profit reported by the lender, SBI said in the BSE filing. India’s largest lender reported a net profit of Rs 4,189.34 crore for the same period last year. The lender’s net interest income, the difference between interest earned and interest, expanded 3.74 per cent year-on-year to ₹27,638 crore in the quarter under review. The NII stood at Rs 26,641 crore in the corresponding quarter last year.
The bank’s operating profit surged 5.06 per cent year-on-year to Rs 18,975 crore in Q1FY22, against Rs 18,061 crore in Q1FY21. The operating profit excluding exceptional items increased by 14.85 percent.
Non-Interest Income for the June quarter rose 24.28 per cent year-on-year to Rs 11,803 crore. The net interest margin (NIM) for the said quarter stood at 3.15 per cent. Domestic net interest margin (NIM) for Q1FY22 came at 3.15 per cent, down by 9 bps year-on-year.
Total Deposits grew at 8.82 per cent year-on-year during Q1FY22, the lender said in the filing. The current account deposits surged by 11.75 per cent year-on-year and saving bank deposits rose by 10.55% year-on-year in the quartet under review.
Domestic credit growth stood at 5.64 per cent year-on-year on the back of retail (personal) advances (16.47 per cent year-on-year), agri advances (2.48 per cent year-on-year) and SME (2.01 per cent year-on-year), the bank said in the regulatory filing. The loan book has expanded by 6.27 per cent year-on-year, including corporate bonds at Rs 23,346 crores. Home loan, which constitutes 23% of Bank’s domestic advances, rose by 10.98% year-on-year during June quarter.
Net NPA ratio declined 9 bps year-on-year to 1.77 per cent during June quarte. Gross NPA ratio decined 12 bps year-on-year to 5.32 per cent during Q1FY22. Provisions for NPA were at Rs 5,029.8 crore against Rs 9,914.2 crore quarter-on-quarter and Rs 9,420 crore year-on-year.
Slippage ratio stood at 2.47 per cent in for Q1FY22, compared to 0.60 per cent at the end of Q1FY21. Credit cost at the end of Q1FY22 had declined 77 bps year-on-year to 0.79 per cent. Capital adequacy ratio (CAR) improved by 26 bps year-on-year to 13.66 percent as of Jun 2021 – without including Q1FY22 profit, the lender said.
“Overall the bank posted a solid set of numbers for Q1FY22 despite the second Covid wave and we expect the positive earnings momentum to continue going forward. Post the Q1FY22 results we maintain our positive view on SBI,” said Jyoti Roy, DVP-equity strategist, Angel Broking Ltd.
SBI Business Activity Index shows economic activity has improved to 94.0 in July 21 from from 67.4 in May. Short term borrowing costs of corporates have registered a sequential uptick in July 21, SBI said.
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