SBI net profit rises to ₹4,574 crore in Q2
SBI reported net NPA of 1.59% of total assets as compared to 2.79% in the same quarter of the previous year.
India’s biggest bank, State Bank of India (SBI) today reported a net profit of ₹ ₹4,574 crore in the September quarter as compared to ₹3011 crore in the same period of the previous year.
It reported net NPA of 1.59% of total assets as compared to 2.79% in the same quarter of the previous year. Gross NPA stood at 5.28%, as compared to 7.19% in the year-earlier quarter.
SBI shares were down 1% in noon trade.
SBI said its gross NPA would have been at 5.88% and net NPA at 2.08% if the bank had classified the loan accounts as NPA after August 31, 2020, in accordance with RBI’s norms. The Supreme Court in its interim order dated September 03, 2020, had directed that the accounts which were not declared NPA till August 31, 2020, shall not be declared NPA till further orders.https://547f5b2f95ae43bdd78b5c3b28b295d0.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html
Accordingly, SBI said it has not declared any domestic loan account as NPA which was standard as of August 31, 2020.
Here are other highlights of SBI Q2 results:
-Net Interest Income of the Bank grew by 15% to ₹28,181
-Domestic Net Interest Margin (NIM) improved to 3.34% in Q2FY21, registering an increase of 12 bps YoY.
-Non-Interest Income (Excl. one-off Items) remained flat with Q2FY21 at Rs.8,528 Cr as against Rs.8,538 Cr in Q2FY20.
-Total Deposits grew at 14.41% YoY, out of which Current Account Depositgrew by 8.55% YoY, while Saving Bank Deposits grew by 16.28% YoY.
-Credit growth stood at 6.02% YoY, mainly driven by Retail (Personal)Advances (14.55% YoY), Agri Advances (4.19% YoY), and CorporateAdvances (2.82% YoY).
-Home loan, which constitutes 23% of the Bank’s domestic advances, has grown by 10.34% YoY.
-Provision Coverage Ratio (PCR) has improved to 88.19%, up 696 bps YoY, and 187 bps QoQ.
-Credit Cost as at the end of Q2FY21 has declined 103 bps YoY to 0.94%.
-Capital Adequacy Ratio (CAR) has improved by 113 bps YoY to 14.72% as on Sep 2020.
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