State Bank of India, the country's largest lender, on November 3, has reported highest ever quarterly standalone profit at Rs 7,627 crore in the quarter ended September 2021, growing 66.7 percent YoY, with easing asset quality pressure and fall in provisions & credit cost. However, the exceptional item on account of revision in family pension payable to employees impacted profitability.
Standalone profit in the corresponding quarter of last fiscal stood at Rs 4,574.16 crore.
SBI said it fully provided Rs 7,418 crore due to change in family pension rules, even as regulator granted dispensation to amortise in 5 years, which has been disclosed as an exceptional item.
Net interest income, the difference between interest earned and interest expended, grew by 10.7 percent year-on-year to Rs 31,183.90 crore in Q2FY22, with loan growth at 6.17 percent and domestic net interest margin expansion of 16 bps YoY at 3.5 percent (up 35 bps QoQ).
"Whole bank advances grew by 6.17 percent YoY to Rs 25.3 lakh crore, mainly driven by personal retail advances (up 15.17 percent YoY) and foreign office advances (up 16.18 percent YoY). Domestic advances growth stood at 4.61 percent YoY, but domestic corporate advances declined 3.91 percent YoY to Rs 7.56 lakh crore," said SBI in its BSE filing.
To Know All Earnings Related News, Click Here
The bank further said including the growth in corporate bonds / commercial papers, the loan book has grown by 6.21 percent YoY.
"Home loan, which constitutes 24 percent of bank’s domestic advances, has grown by 10.74 percent YoY," it added.
Total deposits during the quarter grew at 9.77 percent YoY to Rs 38.09 lakh crore. "Current account deposits grew by 19.20 percent YoY and saving bank deposits increased by 10.55 percent YoY," said the bank.
Asset quality improved during the quarter with the gross non-performing assets as a percentage of gross advances falling 42 bps sequentially to 4.9 percent and net NPA declining 25 bps QoQ to 1.52 percent.
The bank said slippages for the quarter at Rs 4,176 crore have seen a sharp fall compared to Rs 15,666 crore in the quarter ended June 2021.
As a result, slippage ratio for Q2FY22 at 0.66 percent declined significantly from 2.47 percent in Q1FY22. Credit cost for the quarter slipped 51 bps YoY (down 36 bps QoQ) to 0.43 percent, said the bank, adding cost to income ratio at 54.10 percent in September 2021 quarter is lower by 106 bps YoY.
Loan loss provisions for the quarter at Rs 2,699 crore dropped 52 percent compared to year-ago period and declined 46.3 percent on sequential basis, said the bank. Provision coverage ratio (PCR) at 87.68 percent in Q2FY22 improved from 85.93 percent in previous quarter.
Provisions and contingencies (net of write back) fell sharply to Rs 188.75 during September 2021 quarter, compared to Rs 10,051.96 crore in previous quarter and Rs 10,118.31 crore in the corresponding period previous fiscal.
Pre-provision operating profit increased by 9.84 percent YoY to Rs 18,079 crore in the quarter ended September 2021. But non-interest income (other income) fell 3.8 percent to Rs 8,208 crore in the same period.
The stock price reacted positively to quarterly earnings, trading 1.89 percent higher at Rs 531.55 on the BSE, at 14:40 hours IST.Also read
- Latent View Analytics fixes IPO price band at Rs 190-197, to mobilise Rs 600 crore