SBI Q2FY22 Result
SBI Q1 net profit shoots up 55 pc (YoY) to Rs 6,504 Cr, NII increases 3.74 pc
Mumbai/IBNS: India's largest bank SBI posted a net profit at Rs 6,504 crore, up 55.25 per cent year-on-year (YoY), in the quarter ended June 30, 2021, compared to Rs 4,189.34 crore in the same quarter of the last fiscal year.
The bank's Operating Profit or Earnings Before Interest and Tax (EBIT) increased by 5.06 percent to Rs 18,975 crore in the Q1FY22 from Rs 18,061 crore in the year-ago period. Excluding exceptional items, the Operating Profit increased 14.85 per cent.
Net interest income (NII), which is the interest earned from lending activities less interest paid to depositors, grew 3.74 per cent in the June quarter compared to the same quarter in 2021.
Domestic net interest margin (NIM) for Q1FY22 decreased 3.15 per cent from year-ago period by 9 bps.
The bank said its total deposits grew at 8.82 per cent in the quarter under review compared to Q1FY21 and it posted an increase of 11.75 per cent in current account deposits while savings account deposits improved by 10.55 percent YoY.
Total deposits is the inflow of money into the bank in the form of savings accounts, current accounts or Fixed Deposits.
In a BSE filing, the bank said its domestic credit growth increased 5.64 percent, riding on retail (personal) advances (16.47 per cent YoY), agri advances (2.48 percent YoY) and SME (2.01 percent YoY).
Net non-performing assets ratio declined 9 bps YoY to 1.77 percent. Gross NPA ratio fell 12 bps YoY to 5.32 percent.
Banks consider commercial and personal loans, mortgages, construction loans and investment securities as assets.
The bank made Rs 5,029.8 crore provision for NPA against Rs 9,914.2 crore against the previous quarter while it was Rs 9,420 crore in the year-ago period.
The funds a bank needs to set aside loans that cannot be recovered are referred to as provisions. When a loan turns bad, the bank will need the entire amount to recover the losses from that loan account.
The slippage ratio for Q1FY22 came at 2.47 per cent. It was 0.60 per cent at the end of June quarter last fiscal.
Credit cost at the quarter ended June, 2022 declined 77 bps compared to the same period last year to 0.79 per cent.
Capital adequacy ratio (CAR) improved by 26 bps as against last year to 13.66 per cent in the first quarter, excluding Q1FY22 profit, the bank said.
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