SBI net profit drops 7 pc to Rs 6,068 cr in Q1

NEW DELHI, Aug 6: The country’s biggest lender State Bank of India (SBI) on Saturday posted a 7 per cent decline in standalone net profit at Rs 6,068 crore for the first quarter of the current financial year due to fall in income.
The bank had reported a net profit of Rs 6,504 crore in the April-June quarter of 2021-22.
Its standalone total income declined to Rs 74,998.57 crore in the first quarter of 2022-23, as against Rs 77,347.17 crore in the same period a year ago, SBI said in a regulatory filing.
The operating profit of the bank slipped by 33 per cent to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal, impacted by Mark to Market (MTM) losses on its investment book.
“The MTM hit also had an adverse impact on the bank’s Return on Asset and Return on Equity, which stood at 0.48 per cent and 10.09 per cent respectively,” it said.
However, interest income of the bank moved up to Rs 72,676 crore as against Rs 65,564 crore earlier. At the same time, net interest income increased to Rs 31,196 crore from Rs 27,638 crore in the first quarter of the last fiscal.
Net interest margin rose to 3.23 per cent as against 3.15 per cent.
The bank’s gross non-performing assets (NPA) ratio improved to 3.91 per cent from 5.32 per cent at June-end last year. Similarly, net NPAs declined to 1.02 per cent in June 2022 from 1.7 per cent a year ago.
As a result, the provisions for bad loans declined to Rs 4,268 crore from Rs 5,030 in the same period a year ago.
Provision Coverage Ratio (PCR) improved by 719 basis points to 75.05 per cent on an annual basis.
On a consolidated basis, SBI’s net profit fell marginally to Rs 7,325.11 crore as compared to Rs 7,379.91 crore in the same quarter a year ago.
Total income increased to Rs 94.524.30 crore from Rs 93,266.94 crore earlier.
During the quarter, the bank’s balance sheet size crossed Rs 50 lakh crore.
Capital Adequacy Ratio (CAR) of the bank as at the end of Q1 FY23 stood at 13.43 per cent. (PTI)