SBI’s first-quarter net profit: Due to a reduction in revenue, the largest lender in the nation, State Bank of India (SBI), reported a 7% decline in standalone net profit for the first quarter of the current fiscal year, coming in at Rs 6,068 crore. In the April through June quarter of 2021–2022, the bank had posted a net profit of Rs 6,504 crore. SBI reported in a regulatory filing that its standalone total income decreased to Rs 74,998.57 crore in the first quarter of 2022–23 from Rs 77,347.17 crore in the same period last year.
SBI’s first-quarter net profit: KEY POINTS:
- Due to Mark to Market (MTM) losses on its investment book, the bank’s operational profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.
- The bank’s Return on Asset and Return on Equity, which were 0.48 percent and 10.09 percent, respectively, were negatively impacted by the MTM hit.
- However, the bank’s interest income increased to Rs 72,676 crore from Rs 65,564 crore previously. At the same time, net interest income rose from Rs 27,638 crore in the first quarter of the previous fiscal to Rs 31,196 crore.
- From 3.15 to 3.23 percent, the net interest margin increased.
SBI’s first-quarter net profit: SBI’s NPA Ratio:
- The bank’s gross non-performing assets (NPA) ratio decreased from 5.32 percent at June’s end of the previous year to 3.91 percent today. Similar to this, net NPAs decreased from 1.7% in June 2021 to 1.02 in June 2022.
- As a result, the provisions for bad loans decreased from Rs 5,030 in the same period last year to Rs 4,268 crore this year.
- On an annual basis, the Provision Coverage Ratio (PCR) increased by 719 basis points to 75.05 percent.
- SBI’s net profit decreased slightly to Rs 7,325.11 crore on a consolidated basis from Rs 7,379.91 crore in the same period last year.