On Friday, SBI reported a net profit of Rs 4,189.3 crore in the June quarter of FY21, up 81% year-on-year, owing to a rise in net interest income.
There was a 16% rise on a y-o-y basis to Rs 26,641.5 crore in the SBI’s net interest income, or the difference between interest earned and expended. Bloomberg consensus estimate among 15 analysts pegged it at Rs 3,375 crore, whereas the bank’s profit was substantially higher, furthering reporting a net profit of Rs2,312 crore in the June quarter of FY20.
Within the June quarter period, SBI’s overall provisions rose 36% y-o-y to Rs12,501 crore, while its other income saw a decline 0.7% y-o-y to Rs7,957 crore.
An additional provision of Rs 1,836 crore was made by SBI for COVID-19 and had a total provision of Rs 3,008 crore for the pandemic as of 30 June.
(NPA) ratio – gross bad loans as a percentage of total loans – declining 71 basis points (bps) sequentially to 5.44%.
SBI’s total deposits rose 16% y-o-y to Rs 34.19 trillion and its total advances rose 7.6% y-o-y to Rs 22.98 trillion. It’s capital adequacy ratio under Basel III guidelines was at 13.4% as on 30 June.
Credit Suisse said in a note on 7 July that June quarter earnings of banks will highlight “widening growth divergence among various lenders”.
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