SBI | Representative image
The country's largest lender State Bank of India on May 21 reported standalone profit of Rs 6,450.7 crore for the quarter ended March 2021 against a profit of Rs 3,580.81 crore in Q4FY20.
The jump in profit was supported by net interest income and other income, while the low base in the year-ago quarter added to the jump.
Net interest income, the difference between interest earned and interest expended, grew by 18.9 percent year-on-year to Rs 27,067 crore in Q4FY21. The loan growth stood at 5 percent YoY.
The domestic net interest margin expanded 17 bps year-on-year to 3.11 percent in Q4FY21 but fell 23 bps sequentially.
"Domestic credit growth stood at 5.67 percent YoY, mainly driven by retail (personal) advances (that grew 16.47 percent YoY and contributed 36.19 percent to total loan book), SME (4.24 percent YoY) and agri advances (3.92 percent YoY). Including the YoY growth in corporate bonds / commercial papers of Rs 51,811 crore, the loan book has grown by 6.53 percent YoY," said SBI in its BSE filing.
The bank further said home loan, which constitutes 23 percent to bank's domestic advances, has grown by 10.51 percent YoY. Growth in corporate segment (which contributed 37.52 percent to total loan book) remained subdued, but is expected to pick up in second half of FY21, it added.
The bank said, "Total deposits grew at 13.56 percent YoY, out of which current account deposit grew by 27.36 percent YoY, while saving bank deposits grew by 14.79 percent YoY."
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Provisions and contingencies at Rs 11,051 crore (which included loan loss provisions of Rs 9,914.23 crore) in January-March 2021 quarter fell 18.1 percent year-on-year, but still at elevated levels. Sequentially the same increased 6.9 percent.
Asset quality improved significantly with the gross non-performing assets (NPA) as a percentage of gross advances falling 46 bps sequentially to 4.98 percent in the quarter ended March 2021. The net NPA in same period declined 31 bps QoQ to 1.50 percent.
Fresh slippages came in at Rs 21,934 crore at the end of March 2021. Slippages Ratio for FY21 declined to 1.18% from 2.16% as at the end of FY20.
Net NPA ratio at 1.50% is down 73 bps YoY. Gross NPA ratio at 4.98% is down 117 bps YoY
The bank further said the personal retail slippages also declined to Rs 3,287 crore from Rs 4,507 crore in the same period with fall in slippages ratio to 0.44 percent from 0.7 percent.
Non-interest income (other income) during the quarter increased 21.6 percent year-on-year to Rs 16,225.32 crore in Q4FY21. The pre-provision operating profit also jumped 25.2 percent to Rs 19,700.15 crore during the same period.
The standalone profit in the COVID year, FY21, stood at Rs 20,410.47 crore increased substantially by 40.9 percent over previous year, driven by pre-provision operating profit and lower tax cost. "Net interest income grew by 12.9 percent to Rs 1,10,740 crore compared to previous year, even as deposits growth outpaced credit growth, due to better resources and asset quality management," said SBI.
State Bank of India has declared a dividend of Rs 4 per share for the financial year ended March 2021.
The stock was trading at Rs 398.5 on the BSE, up 3.63 percent at the time of publishing this copy. It rallied 40 percent in the current year 2021, so far, and surged 151 percent in the last one year.