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SBI Q4 profit jumps 4-fold to Rs 3,581 crore, fresh slippages decline 51%

State Bank of India sold stake in its subsidiary SBI Cards and Payment Services which lifted profitability.

June 05, 2020 / 03:19 PM IST
 
 
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The Country's largest lender State Bank of India on June 5 reported a standalone profit of Rs 3,580.81 crore in January-March quarter, a growth of over four-fold YoY supported by lower provisions and stake sale. But it was much lower than analysts estimates due to moderate growth in other income (non-interest income) and fall in PPoP.

Net profit included Rs 2,731.34 crore on sale of certain portion of investment in subsidiary SBI Cards and Payment Services during the quarter, the bank said.

Net interest income declined 0.8 percent year-on-year to Rs 22,766 crore in the quarter ended March 2020 due to moderate loan growth at 6.4 percent YoY. Domestic net interest margin dipped to 2.94 percent in Q4FY20, down 8 bps YoY and 65 bps QoQ.

Numbers missed analysts estimates. Profit was estimated at Rs 5,714.8 crore and net interest income at Rs 25,905.1 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Asset quality has seen improvement in the quarter ended March 2020. Gross non-performing assets as a percentage of gross advances declined 42 basis points sequentially to 2.23 percent and net NPAs dropped 79 basis points QoQ to 6.15 percent during the quarter.

Fresh slippages were down sharply by 51 percent to Rs 8,105 crore at the end of March quarter 2020, compared to Rs 16,525 crore in previous quarter.

Agri slippages were quite high at Rs 5,238 crore at the end of March 2020, against Rs 2,965 crore as of December 2019, but corporate slippages dropped significantly to Rs 1,561 crore from Rs 9,467 crore on sequential basis and SME slippages were also down to Rs 227 crore (against Rs 1,578 crore QoQ).

Slippages ratio for Q4FY20 has declined to 1.41 percent from 2.94 percent as of Q3FY20, said the bank, adding provision coverage ratio (PCR) has improved to 83.62 percent in March quarter, up 189 bps QoQ.

Recovery and upgradation was lower at Rs 2,528 crore in March quarter, against Rs 13,553 crore in December quarter of current financial year.


Provisions for bad loans jumped significantly by 86.1 percent sequentially to Rs 13,495 crore, but were down 18.2 percent compared to corresponding quarter of last fiscal.Image1562020

Non-interest income in Q4FY20 grew by 5.2 percent to Rs 13,346.11 crore compared to year-ago quarter, as fee income (which contributed 59 percent) declined 8.34 percent YoY to Rs 7,873 crore.

Pre-provision operating profit (PPoP) during the quarter fell 7.1 percent to Rs 15,733.78 crore YoY due to increase in employee cost.

For the full year FY20, SBI reported highest ever profit at Rs 14,488 crore against Rs 862 crore in FY19, while net interest income increased by 11 percent to Rs 98,085 crore.

The stock plunged 50 percent of its value in last one year, while it shed 48 percent year-to-date (2020) and 41 percent in March quarter.

Moneycontrol News
first published: Jun 5, 2020 02:24 pm

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