Comments
State Bank of India has reported an 81 per cent jump in Q1 standalone net profit at ₹4,189 crore on the back of lower loan loss provision burden and gain on sale of a part of its investment in its life insurance subsidiary. The country’s largest bank had reported a net profit of ₹2,312 crore in the year-ago quarter.
Chairman Rajnish Kumar said: “As on June 30, 2020, we are asymptomatic ( vis-à-vis the impact of Covid-19)…However, like an individual, we (the bank), too, have to be on guard.”
The net interest income was up 16 per cent year-on-year (yoy) at ₹26,642 crore (₹22,939 crore in the year-ago quarter). Other income, including fee and commissions, foreign exchange and derivatives revenue, gain on sale/revaluation of investments, and miscellaneous income, edged down to ₹7,957 crore (₹8,015 crore).
Loan loss provisions were 19 per cent lower at ₹9,420 crore (₹11,648 crore). The bank earned a ₹1,540-crore profit during the quarter on sale of a portion of its investment in SBI Life lnsurance Co.
Asset quality improves
Fresh slippages were substantially lower at ₹3,637 crore (₹16,212 crore). Gross non-performing assets (GNPAs) declined ₹19,431 crore during the quarter to ₹1,29,661 crore.
Kumar said SBI has visibility on recovering stressed loans of ₹14,000-₹15,000 crore in the next two quarters, including from a large corporate account (₹11,000 crore).
The net NPA position, too, improved to 1.86 per cent of net advances against 2.23 per cent in the preceding quarter.
The SBI chief said the bank is seeing signs of a ‘U’ shaped recovery in credit in the personal segment, including home loans.
SBI has revised the credit growth target for FY21 lower to 8 per cent from 10-plus per cent projected earlier. It is evaluating a project pipeline of ₹1-lakh crore, Kumar said.
SBI reported a credit growth of 6.58 per cent yoy, mainly driven by retail (personal) loans (up 12.85 per cent yoy) and foreign office advances (11.19 per cent yoy).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.