Sbi Reports Highest Ever Quarterly Profit But Misses Estimates
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India’s biggest bank State Bank of India (SBI) on Friday reported a 41% rise in standalone net profit at ₹9,113.5 crore for the quarter ended March 2022, its highest ever quarterly profit, but missed analysts’ estimates as bad loan provisions rose sequentially. The lender had reported a profit of ₹6,450.7 crore in the year-ago quarter.
SBI‘s net interest income (NII), the difference between interest earned and expended, saw an increase of 15% to ₹31,198 crore during Q4FY22 from ₹27,067 crore year-on-year (YoY). Domestic net interest margin (NIM) for Q4FY22 increased by 29 bps YoY at 3.40%.
The total provision for contingencies including those for bad loans stood at ₹7,237 crore compared to ₹6,974 crore from the previous quarter and ₹11,051 crore (YoY).
The public lender’s asset quality improved as gross non-performing assets (NPAs) were at 3.97% of the total assets, down from 4.50% while net NPA stood at 1.02% compared to 1.34% quarter-on-quarter (QoQ).
SBI’s provision coverage ratio (PCR) improved by 416 bps YoY at 75.04%. PCR (including AUCA) stands at 90.20%. Meanwhile, its slippage Ratio for the fourth quarter stands at 0.43%.
The board has declared a dividend of ₹7.10 per equity share (710%) for the financial year ended 31st March, 2022. The record date for the said dividend has been fixed on Thursday, May 26, 2022.
On a consolidated basis, the bank reported a 56% increase in net profit at ₹9,549 crore, compared to ₹6,126 crore in the fourth quarter of the previous fiscal.
SBI shares were trading 2% higher at ₹473 apiece on the BSE in Friday’s afternoon deals. The bank stock is down 0.3% in year-to-date (YTD) terms.
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