SBI Q1 results: Net profit grows 2.8 times to record Rs 16,884 crore, exceeds Street estimates

SBI reported a record net profit of Rs 16,884.3 crore for the June quarter. | File Image

State Bank of India (SBI) — the country's largest lender — on Friday reported a record standalone net profit of Rs 16,884.3 crore for the April-June period, beating analysts' estimates, driven by a rise in net interest income, healthy loan growth and lower provisions. The state-run bank had registered a net profit of Rs 6,068.1 crore for the corresponding quarter a year ago.

Its net interest income (NII) — or the difference between interest earned and interest paid — came in at Rs 38,905 crore for the first quarter of the current financial year, as against Rs 31,195.9 crore for the year-ago period, according to a regulatory filing.

According to Zee Business research, SBI was estimated to report a quarterly standalone net profit of Rs 15,680 crore and net interest income of Rs 40,600 crore.

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The banking behemoth's asset quality deteriorated on a sequential basis, with its net non-performing assets (NPAs) — or bad loans — rising to 0.71 per cent in the June quarter from 0.67 per cent in the previous three months, according to the filing.

Gross NPAs stood at 2.76 per cent for the April-June period as against 2.78 per cent for the March quarter.

Provisions and contingencies fell 43 per cent on a year-on-year basis to Rs 2,501 crore for the three months to June 30.

SBI shares slipped into the red minutes after the earnings announcement. The stock declined by as much as Rs 15.2 or 2.6 per cent to Rs 575.5 apiece, having gained to as high as Rs 598.5 apiece earlier in the day.

The State Bank of India stock finished the June quarter with a gain of 9.4 per cent, in line with a 10.5 per cent rise in the benchmark Nifty index.

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