SBI sees a stellar Q1 as PAT nearly doubles to Rs4,189cr with lower provisions, gross NPA

In Q1FY21, SBI posted a net profit of Rs4,189cr rising by 81.18% from Rs2,312cr a year ago same period.

Jul 31, 2020 05:07 IST India Infoline News Service

State Bank of India (SBI) has once again reported a stellar quarter, and this time the lender has recorded growth in both bottom-line and top-line during April - June 2020 (Q1FY21) period amid Covid-19 lockdown. In Q1FY21, SBI posted a net profit of Rs4,189cr, rising by 81.18% from Rs2,312cr a year ago same period. Q1 PAT also increased by 16.99% compared to Rs3,581cr of the preceding quarter.

Net interest income (NII) which is the difference between interest income and expenses, stood at Rs26,642cr during the quarter under review, representing a growth of 16.14% and 17.02% against Rs22,939cr of Q1FY20 and Rs22,767cr of Q4FY20.

Net Interest Margin (NIM) expanded by 23 basis points to 3.24% versus 3.01% of Q1FY20.

SBI's provisions stood at  Rs12,501.30cr for the quarter, lower compared to Rs13,495.08cr of the previous quarter, however, was higher from Rs9,182.94cr in the same quarter last year.

In the latest quarter, gross NPA stood at Rs1,29,661cr, down by 23.05% from Rs1,68,494cr of Q1FY20 and also below 13.03% compared to Rs1,49,092cr of Q4FY20. In percentage terms, gross NPA was at 5.44% versus 7.53% of Q1FY20 and 6.15% of Q4FY20.

Other key highlights of the Q1 result as per the filing were:

Credit growth stood at 6.58% YoY, mainly driven by Retail (Personal) Advances (12.85% YoY) and Foreign Office Advances (11.19% YoY). Home loan, which constitutes 22% of Bank’s domestic advances, has grown by 10.72% YoY.

Total Deposits grew at 15.96% YoY, out of which Current Account Deposit grew by 12.98% YoY, while Saving Bank Deposits grew by 17.29% YoY.

Provision Coverage Ratio (PCR) has improved to 86.32%, up 698 bps YoY and 270 bps qoq.

Slippages Ratio for Q1FY21 has declined to 0.60% from 2.83% as at the end of Q1FY20.

Cost to Income Ratio has improved from 57.21% in Q1FY20 to 50.02% in Q1FY21, an improvement of 719 bps.

Capital Adequacy Ratio (CAR) has improved by 51 bps YoY to 13.40% as on June 2020.

Return on Assets (RoA) increased by 17 bps yoy to 0.42% in Q1FY21 against 0.25% in Q1FY20.

Share of Alternate Channels in total transactions has increased from 90% in Q1FY20 to 93% in Q1FY21.

On Sensex, SBI stock ended at Rs191.45 per piece higher by 2.63%. 

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