SBI Q1 profit jumps 81% YoY to Rs 4,189 cr, moratorium declines to 9.5%
The country’s largest bank, State Bank of India, has posted 36.8 cent rise in profit before tax (PBT) at Rs 5,559.7 crore for the quarter ended June 2020 (Q1FY21) on robust growth in net interest income. SBI reported a standalone net profit of Rs 4,189.34 crore for June quarter of FY21 (Q1FY21) on Friday, supported by a one-time gain from stake sale in SBI Life for Rs 1,539.73 crore. This was 81.18 per cent higher than the Rs 2,312.2 crore net profit 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 the March quarter of FY20.
“Exceptional items for quarter ended June 30, 2020, represent a profit of Rs 1,539.73 crore on sale of a certain portion of investment in bank’s subsidiary SBI Life insurance 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.
The bank’s operating profit increased by 36.35 per cent on a yearly basis to Rs. 18,061 crore in Q1FY21 from Rs 13,246 crore in Q1FY20.
Besides, net interest income (NII) of SBI – the difference between interests 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. Domestic Net Interest Margin (NIM) improved to 3.24 per cent in Q1FY21, registering an increase of 23 bps YoY.