State Bank of India (SBI) reported a four-fold jump in fiscal fourth quarter standalone net profit at Rs 3,580.81 crore, primarily because of the one-time gain of Rs 2,731.34 crore from the IPO proceeds of its credit card unit SBI Card and Payments Services
State Bank of India (SBI) reported a four-fold jump in fiscal fourth quarter standalone net profit at Rs 3,580.81 crore, primarily because of the one-time gain of Rs 2,731.34 crore from the IPO proceeds of its credit card unit SBI Card and Payments Services. SBI registered a growth of 327 per cent in January-March net profit from Rs 838.4 crore clocked in the corresponding period of the preceding financial year. SBI share price jumped 9 per cent to Rs 189.80 apiece on BSE in late afternoon deals, after the results announcement. That outperformed a 0.69 per cent or 235 points rise in the S&P BSE Sensex. India’s largest bank’s net profit for the full FY20 stood at Rs 14,488 crore as compared to Rs 862 crore in the previous fiscal, which is the highest ever yearly net profit by the bank, SBI said in a regulatory filing.
With today’s rally in the stock, SBI share price has surged nearly 27 per cent from its recent low of Rs 149.55 touched on May 22. However, the stock is still nearly 50 per cent off from its 52-week high of Rs 373.70. The gross non performing assets (NPAs) of the bank has improved at 6.15 per cent of gross advances as on March 31, 2020 as against 7.53 per cent by the same period of 2019. While net NPA or bad loans came at 2.23 per cent during March quarter of FY20 as compared to 3.01 per cent by the year-ago same period.
Operating profit increased to Rs 68,133 crore in FY20 from Rs 55,436 crore in FY19, an on-year increase of 22.90 per cent.”The bank has made provisions aggregating Rs 938 crore against the accounts with the outstanding amount of Rs 6,250 crore, which are standard, but would have slipped to NPA/sub-category on March 31, 2020 had the RBI debt servicing relief as above not been reckoned,” the management said in a statement in respect of Covid-19 provisions.
SBI posted a 11.02 per cent on-year growth in Net Interest Income (NII) in the quarter ended on March 31. Home loan, which constitutes 22% of the SBI’s domestic advances, has grown by 13.86 per cent on a year-on-year basis. The net NPA ratio came at 2.23 per cent, down 78 bps on year-on-year and 42 bps on quarter-on-quarter basis.