Largest lender
State Bank of India (SBI) has reported yet another stellar quarter. SBI posted its financial performance for September 2020 (Q2FY21) period, under which the bank recorded a net profit of Rs4,574cr compared to Rs3,012cr a year ago same period, rising by a whopping 51.88%.
In comparison to June 2020 (Q1FY21) quarter where profit stood at Rs4,189cr, SBI had witnessed a 9.19% growth in the latest period.
Net Interest Income (NII) was at Rs28,181cr in the quarter under review, increasing by 14.56% from Rs24,600cr in Q2FY20 and was also up 5.78% from Rs26,642cr of Q1FY21.
Net Interest Margin expanded to 3.34% in Q2FY21 versus 3.24% in Q1FY21 and 3.22% in Q2FY20.
Gross non-performing assets (GNPA) stood at Rs1,25,863cr declining by 22.13% from Rs1,61,636cr in Q2FY20 and also down by 2.93% from Rs1,29,661cr of Q1FY21.
In percentage terms, gross NPA improved to 5.28% versus 5.44% in Q1FY21 and 7.19% in Q2FY20.
SBI during the quarter made a provision of Rs2,124cr as employee wage revision. A provision of Rs239cr was made against Covid-19 related accounts.
SBI said, "Bank has delivered a strong performance in Q2FY21 with all-round improvement in Profitability, Capital Adequacy and Provision Coverage Ratio, including Additional Provision over Minimum Regulatory Provisions required."
Key highlights from Q2 as per the filing are:
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Total Deposits grew at 14.41% YoY, out of which Current Account Deposit grew by 8.55% YoY, while Saving Bank Deposits grew by 16.28% YoY.
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Credit growth stood at 6.02% YoY, mainly driven by Retail (Personal) Advances (14.55% YoY), Agri Advances (4.19% YoY) and Corporate Advances (2.82% YoY).
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With the YoY growth in Corporate Bonds / CPs at Rs54,980cr taken together, the loan book has grown by 7.97% YoY
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Home loan, which constitutes 23% of Bank’s domestic advances, has grown by 10.34% YoY.
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Net NPA ratio at 1.59% is down 120 bps YoY and 27 bps QoQ. Gross NPA ratio at 5.28% is down 191 bps YoY and 16 bps QoQ.
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Provision Coverage Ratio (PCR) has improved to 88.19%, up 696 bps YoY and 187 bps QoQ.
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Slippages Ratio for Q2FY21 has declined to 0.46% from 1.57% as at the end of Q2FY20.
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Credit Cost as at the end of Q2FY21 has declined 103 bps YoY to 0.94%
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Capital Adequacy Ratio (CAR) has improved by 113 bps YoY to 14.72% as on Sep 2020.
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Return on Assets (RoA) increased by 14 bps YoY to 0.43% in H1FY21 against 0.29% in H1FY20.
On Sensex, SBI stock ended at Rs207.05 per piece up 1.12%.