: SBI net profit in Q1 surges 55 pc to Rs 6,504 cr #FinanceIndia #StockMarketNEWS #Business New Delhi: The country’s biggest bank SBI on Wednesday posted a 55 per cent rise in standalone net profit

@StockMarketNEWS Sat 07 Aug, 2021

Posted in: #Business #FinanceIndia #StockMarketNEWS

SBI net profit in Q1 surges 55 pc to Rs 6,504 cr #FinanceIndia #StockMarketNEWS #Business
New Delhi: The country’s biggest bank SBI on Wednesday posted a 55 per cent rise in standalone net profit at Rs 6,504 crore for the first quarter of the current financial year, helped by decline in bad loans.

The lender had reported a net profit of Rs 4,189. 34 crore in the April-June quarter of 2020-21.

State Bank of India’s (SBI) standalone total income increased to Rs 77,347. 17 crore in the first quarter of 2021-22 as against Rs 74,457. 86 crore in the same period a year ago, according to regulatory filing.

The operating profit of the bank increased 5 per cent to Rs 18,975 crore from Rs 18,061 crore in the April-June quarter of the previous fiscal. However, interest income of the bank declined marginally to Rs 65,564 crore as against Rs 66,500 crore at the end of June 2020. Net interest margin too slipped to 3. 15 per cent as against 3. 24 per cent at the end of first quarter of last year.

The bank’s gross non-performing assets (NPA) of the total advances declined to 5. 32 per cent at June-end from 5. 44 per cent at June-end last year.

Similarly, net NPAs also declined to 1. 7 per cent in June 2020 against 1. 8 per cent a year ago.

As a result, the provision for bad loans declined to Rs 5,029. 79 crore from Rs 9,420. 46 in the same period a year ago.

SBI said that the bank has made additional COVID-19 related contingency provisions at Rs 9,065 crore at the end of first quarter.

During the quarter, the bank reported slippages to the tune of Rs 15,666 crore while it has approved restructuring of loans worth Rs 5,246 crore as per the guidelines of Reserve Bank of India (RBI).

Provision coverage ratio as on June 30, 2021, stood at 85. 93 down from 86. 32 per cent. Capital Adequacy Ratio (CAR) has improved to 13. 66 per cent at the end of June 2021.

On a consolidated basis, SBI’s net profit also rose by 55 per cent to Rs 7,379. 91 crore as against Rs 4,776. 50 crore in the same quarter a year ago.

At the same time, total income increased to Rs 93,266. 94 crore as compared to Rs 87,984. 33 crore in the first quarter of the previous fiscal.

Talking about challenges posed by COVID-19, SBI said major headwinds for the bank could be from extended working capital cycles, fluctuating cash flow trends and probable inability of the borrowers to meet their obligations against the loans timely.

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