The State Bank of India (SBI) on Wednesday reported a spike of 55.3% in its Q1 standalone net profit of ₹6,504 crore, a significant improvement as compared to ₹4,189 crore in the same quarter last year. It witnessed a surge in the net interest income with 3.7% at ₹27,638 crore by outstripping the prior target of ₹26,641 crore year-on-year (YoY).
SBI’s miscellaneous income increased in Q1 from ₹7,957.5 crore to ₹11,802.7 crore in the year’s quarter. On a contrary, it also earned heavily on its asset quality. The gross non-performing asset (NPA) experienced a growth of 5.32% against 4.98% on a sequential basis, on the other hand, the net NPA transpired to 1.77% opposing the 1.50% quarter-on-quarter rate (QoQ).
The provisions and contingencies significantly shrank to ₹10,052 crore from ₹11,150 crore QoQ and ₹12,501 crore YoY. The complete provision maintained for COVID-19 exigency is ₹9,065 crore with a coverage ratio of 85.93%.
The SBI official reiterated during a filing event ”The spread of COVID-19 pandemic across the globe has resulted in a decline in economic activities and movement in financial markets. ln this situation, Bank is gearing up itself on all fronts to meet the challenges. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. Major challenges for the Bank could be from extended working capital cycles, fluctuating cash flow trends and the probable inability of the borrowers to meet their obligations against the loans timely.”
In Wednesday’s afternoon deals, SBI shares were notably trading over a 2% higher rate just after the earnings at ₹456 per share was proclaimed on the BSE.