SBI Q1 profit jumps 81% YoY to Rs 4,189 cr, moratorium declines to 9.5%

The provision of Rs 3,008 crore is held by the bank on Covid-19 related accounts as on June 30, 2020


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State Bank of India (SBI) on Friday reported standalone net profit of Rs 4,189.34 crore for June quarter of FY21 (Q1FY21), supported by one-time gain from stake sale in SBI Life for Rs 1,539.73 crore. This was 81.18 per cent higher from net profit of Rs 2,312.2 crore reported in the June quarter of FY20. On a quarterly basis, the net profit grew 17 per cent from Rs 3,580.8 crore reported in March quarter of FY20.

“Exceptional items for quarter ended June 30, 2020 represent profit of Rs 1,539.73 crore on sale of certain portion of investment in bank’s subsidiary SBI Life lnsurance Company Limited,” said the bank in a statement.

On a consolidated basis, the net profit came in at Rs 4,776.5 crore, up 61.88 per cent YoY, from Rs 2,950.5 crore reported in Q1FY20.

The numbers beat Street estimates by a huge margin. Centrum Broking, for instance, saw the net profit at Rs 3,796.9 crore, while Emkay Global Financial Services pegged it at Rs 3,155.6 crore. Those at HDFC Securities, meanwhile, estimated the net profit at Rs 3,330 crore. CLICK HERE TO READ WHAT ANALYSTS HAD EXPECTED

Besides, the public sector bank’s net interest income (NII) – the difference between interest earned and expended – came in at Rs 26,641.6 crore, clocking a 16.1 per cent growth on a yearly basis from Rs 22,938.8 crore. The same was Rs 22,766.9 crore in Q4FY20.

Provisions and slippages

The bank created total provisions worth Rs 12,501.30 crore during the quarter under review, of which provisions for NPA stood at Rs 9,420.46 crore. Total provision at the end of Q1FY20 was Rs9,182.94 crorw. Sequentially, the total provision declined 28.4 per cent from Rs 18,495.08 crore at the end of Q4FY20.

“During quarter one of FY2020- 21, the bank has made an additional provision of Rs 1,836 crore on account of Covid-19 related accounts. The provision of Rs 3,008 crore is held by the bank on Covid-19 related accounts as on June 30, 2020,” the bank said in a statement.

Provision Coverage Ratio as on June 30, 2020 was 86.32 per cent.

It further said, for the accounts covered under the provisions of lnsolvency and Bankruptcy Code (lBC), the Bank is holding total provision of Rs 5,835.29 crore (95.67 per cent of total outstanding) as on June 30, 2020.

As regards slippages, the bank reported fresh slippages at Rs 3,637 crore, down from Rs 8,101 crore reported in Q4FY20.

Asset quality and moratorium

The bank said its loans under moratorium was 9.5 per cent at the end of June, 2020 quarter compared with 23 per cent at the end of March quarter of FY20.

The asset quality, therefore, improved on a sequential basis. The gross non-performing assets (GNPA) were Rs 1.29 lakh crore, down from Rs 1.49 lakh crore reported in Q4FY20. In percentage terms, GNPA ratio improved by 71 bps QoQ to 5.44 per cent from 6.15 per cent in Q4FY20.

Net NPA (NNPA), on the other hand, were Rs 42,703 crore, down from Rs 51,871.3 crore in Q4FY20. The ratio was 1.86 per cent, down 37 bps QoQ.

At 1:55 pm, the stock was trading nearly 4 per cent higher, and was the top gainer on the S&P BSE Sensex, at Rs 193.45 on the BSE. In comparison, the Sensex was down 227 points, or 0.6 per cent. The stock hit an intra-day high and low of Rs 194.25 and Rs 186.85, respectively.