India’s largest bank, State Bank of India (SBI) today reported a net profit of ₹ ₹4,574 crore in the September quarter compared to ₹3011 crore in the same period of the previous year.
It reported a net default of 1.59% of total assets compared to 2.79% in the same quarter of the previous year. Gross delinquency stood at 5.28%, compared to 7.19% in the quarter of the previous year.
SBI shares fell 1% in midday trading.
SBI said its gross NPA would have been 5.88% and net NPA 2.08% if the bank had classified loan accounts as NPA after August 31, 2020, in accordance with RBI standards. The Supreme Court, in its provisional order of September 3, 2020, had ordered that accounts that were not declared NPA until August 31, 2020, will not be declared NPA until further orders.
Accordingly, SBI said it has not declared any national loan accounts as NPA, which was standard as of August 31, 2020.
Here are other highlights from SBI’s second quarter results:
-The Bank’s Net Interest Income grew 15% to ₹28,181
-The National Net Interest Margin (NIM) improved to 3.34% in Q2FY21, registering
a 12 bp year-over-year increase.
-Income without interest (excluding extraordinary items) was stable with the second quarter of fiscal 21 at Rs.
8,528 Cr vs. 8,538 Cr in Q2FY20.
-Total deposits grew 14.41% year-on-year, of which current account deposits
it grew 8.55% year-on-year, while savings deposits grew 16.28% year-on-year.
-Credit growth stood at 6.02% year-on-year, mainly driven by Retail (Personal)
Advances (14.55% YoY), Agri Advances (4.19% YoY) and Corporate
Advances (2.82% year-on-year).
-Home loan growth, which constitutes 23% of the Bank’s internal advances
by 10.34% year-on-year.
-The provision coverage rate (PCR) has improved to 88.19%, up to 696 bp year-on-year and
187 bps quarterly.
-The cost of credit at the end of the second quarter of fiscal year 21 has decreased 103 bp year-on-year to 0.94%.
-The capital adequacy ratio (CAR) has improved by 113 bp year-on-year to 14.72% in
September 2020.
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