State Bank of India (SBI) on Friday posted better-than-expected
financial earnings for the quarter ended March 31 on a one-time gain of Rs 2,731.34 crore.
The bank reported 327 per cent year-on-year growth in net profit at Rs 3,580.81 crore. Analysts in an ETNow poll had projected the profit figure at Rs 2,000 crore.
Following the development, share price of SBI spiked over 8 per cent to hit an intraday high of Rs 189 on BSE. The benchmark
BSE Sensex traded 0.72 per cent higher at 34,226 around the same time.
Here are the key highlights from SBI’s Q4 earnings:
- Provisions and contingencies up… The bank provided for Rs 13,495.08 crore, up 86 per cent QoQ from Rs 7252.50 crore in the preceding quarter ended December 31. But on a year-on-year basis, the number declined 18 per cent. The provision coverage ratio (PCR) improved 189 basis points QoQ and 489 basis points YoY to 83.62 per cent.
- Loan moratorium… The bank has sanctioned Rs 17,116 crore Covid-19 related loans so far. The loan moratorium is availed by 21.80 per cent of its customers. “In the corporate book, only 13 per cent have not paid an instalment,” Kumar said, adding that 82 per cent of customers paid at least two instalments during lockdown.
- Bank well-capitalised… SBI said that the bank is well capitalised. Credit risk-weighted assets on advances to gross advances stood at 56.72 per cent as of March 31 against 56.60 per cent last year.
- Highest annual profit… SBI posted highest-ever annual profit for FY20, with bottomline growing over 1,500 per cent to Rs 14,488.11 from Rs 862.23 crore in FY19. Operating profit increased to Rs 68,133 crore from 55,436 crore in 2018-19.
- Other parameters… SBI’s return on assets (RoA) increased by 36 basis points YoY to 0.38 per cent in FY20 from 0.02 per cent in FY19. The bank expects FY21 credit growth at 7-8 per cent, Kumar said.