SBI Q1 results: PSB registers highest quarterly net profit of Rs 6,504 crore

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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.