SBI Q1 Results: Earnings beat expectations, asset quality stable; Stock jumps

SBI Q1 Results: Earnings beat expectations, asset quality stable; Stock jumps


State Bank of India Ltd. (SBI), India’s largest lender, reported its June quarter results that were better than analyst expectations on Friday, August 7.

Net Interest Income (NII) or core income for the quarter stood at ₹46,992 crore, a growth of 15% compared to the same quarter last year. A CNBC-TV18 poll was working with a figure of ₹45,800 crore, which would have implied a growth of 11.5% year-on-year.

Net profit for SBI stood at ₹21,121 crore, while the CNBC-TV18 poll had projected the figure to be ₹19,145 crore. On a year-on-year basis, SBI’s net profit grew 10.2%.

Asset quality for India’s largest lender remained stable with Gross NPA at 1.47% compared to 1.49% last quarter, while Net NPA stood at 0.38% from 0.39% earlier. In absolute terms, Gross NPA stood at ₹74,272 crore from ₹73,452 crore in March, while Net NPA stood at ₹19,158 crore from ₹18,830 crore earlier.

Provisions for the quarter stood at ₹5,047 crore, compared to ₹2,872 crore in the previous quarter.

Net Interest Margins (NIMs) for the whole bank stood at 2.86%, compared to 2.81% in the previous quarter. Domestic NIMs stood at 3% from 3.01% last year and 2.93% in the previous quarter.

Gross Advances for the quarter grew by 18.6% from last year to ₹50.47 lakh crore, while deposits grew by 9.7% from the year-ago period to ₹60 lakh crore. CASA ratio for the quarter stood at 39.24% from 39.36% last year.

Slippages for the quarter have seen a marginal increase to ₹7,359 crore, compared to ₹5,548 crore in the previous quarter. Analysts, however, were working with a figure of ₹7,600 crore.

“I was little surprised that it hasn’t done too well, especially after some value unlocking, also with the SBI Mutual Fund IPO. The corporate loan book growing is a very healthy sign. You know, I’ve not seen 17-18% credit growth at a system level. Leading bank, doing double digit. I think that’s a very healthy sign for the economy as well. Corporate loan book is pointing to you know a larger capex cycle now coming into play, very strong set of numbers,” Gurmeet Chadha of Complete Circle told CNBC-TV18. “I think it’s a it’s a great set, and you would see maybe a little bit more re-rating for SBI as per my view,” he added.

Shares of SBI are trading 2.5% higher after the results announcement at ₹1,111.8. The stock is up 13% so far for the year, but remain below their record high of ₹1,234.



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