SBI Q1 Results: Net Profit Down 7% On Lower Other Income, Higher Expenses
State Bank of India saw its net profit decline in the April-June quarter on lower other income and higher expenses.
State Bank of India's net profit fell in the April-June quarter as other income fell and expenses rose.
Net profit for the quarter stood at Rs 6,068 crore, compared with Rs 6,504 crore a year ago. Analysts polled by Bloomberg estimated a net profit of Rs 8,392 crore for the quarter.
Net interest income, or core income, rose 12.87% year-on-year to Rs 31,196 crore. Other income fell 80% from last year to Rs 2,312 crore. The drop in other income was largely due to a Rs 6,549 crore loss on investments the bank reported during the quarter. Forex income doubled year-on-year to Rs 2,014 crore.
Asset Quality Stable
Asset quality position for the bank remained stable with gross non-performing asset ratio at 3.91%, down 6 basis points sequentially. Net NPA ratio too improved to 1%, compared with 1.02% as of March 31.
Gross additions to bad loans during the quarter stood at Rs 10,115 crore, which included fresh slippages worth Rs 9,740 crore. The rest of the additions came from increase in outstanding balances for previous slippages. The gross additions were up 180% quarter-on-quarter.
Recoveries and upgrades stood at Rs 5,208 crore, while total reduction in NPAs including write-offs stood at Rs 8,866 crore. Provisions for the quarter stood at Rs 4,392 crore, down 56% from a year ago.
Business Growth
Total domestic advances were up 13.66% year-on-year and stood at Rs 24.5 lakh crore.Total assets, including foreign offices stood at Rs 29 lakh crore, up 14.93% year-on-year.
This included retail advances worth Rs 10.34 lakh crore, up 18.6% and corporate advances at Rs 8.74 lakh crore, up 10.57% year-on-year. Of the retail advances, home loans rose 13.77% year-on-year to Rs 5.75 lakh crore, while Xpress Credit rose 32.41% to Rs 2.6 lakh crore.
Agriculture and small and medium enteprises advances rose 10% each.
Deposits as of June 30 stood at Rs 40.45 lakh crore, up 8.73% from a year ago. This included current account savings account deposits worth Rs 17.67 lakh crore and term deposits worth Rs 21.32 lakh crore.