Tips to save IPO listing gains tax!
In the years 2023 and 2024, many IPOs brought huge earnings for the investors. But tax also has to be paid on this! What is the tax rule on booking listing gains from IPO? How can tax liability on listing gains be reduced? How will the tax be calculated on selling IPO shares?
State Bank of India (SBI) on August 4 reported its highest-ever quarterly net profit of Rs 6,504 crore for the quarter ended June 30, registering a growth of 55.25% on a year-on-year basis. Net interest income increased by 3.74% YoY to Rs 27,638 crore. On the other hand, the operating profit of the lender increased by 5.06% YoY to Rs 18,975 crore. Shares of the lender traded 2.90% higher at Rs 459.40 at around 2.52 pm (IST), while the benchmark BSE Sensex was up 1.04% at 54,381.30 at around the same time.
Provisions and contingencies declined 19.6% YoY to Rs 10,051.96 crore in the reported quarter, while other income soared 48.5% to Rs 11,802.7 crore.
Asset quality of the lender deteriorated marginally on a quarter-on-quarter basis due to the onset of the second wave of the Covid-19 pandemic. The gross non-performing assets ratio stood at 5.32% as against 4.98% in the preceding quarter ended March 31. Likewise, the bank’s net NPA came at 1.77% against 1.50% in the previous quarter.
Key highlights
Total deposits of the bank increased by 8.82% YoY. Current account deposits rose by 11.75% YoY and saving bank deposits grew by 10.55% YoY. Domestic credit growth stood at 5.64% YoY, mainly driven by retail (personal) advances (16.47% YoY). It was followed by agri advances (2.48% YoY) and SME (2.01% YoY).
Home loan, which constitutes 23% of bank’s domestic advances, has grown by 10.98% YoY. The capital adequacy ratio (CAR) of the bank has improved by 26 basis points YoY to 13.66% as on June 2021 — without including Q1FY22 profit. Return on assets (RoA) grew by 15 basis points YoY to 0.57% in Q1FY22 against 0.42% in Q1FY21. Return on equity (RoE) increased by 357 bps YoY to 12.12% in Q1FY22 against 8.55% in Q1FY21.