SBI Q2 results: Profit surges 52% YoY to Rs 4,574 crore, beats Street estimates

Top lender State Bank of India (SBI) reported a 51.9 per cent year-on-year (YoY) rise in net profit for the quarter ended September at Rs 4,574.16 crore. The bank had reported a net profit of Rs 3,011.73 crore in the same quarter a year ago.

An ET Now poll had projected the profit figure at Rs 4,400 crore.

Its total income came in at Rs 75,341.80 crore, up 3.42 per cent from Rs 72,850.78 crore a year ago. The bank’s net interest income (NII) for the quarter rose 14.56 per cent to Rs 28,181 crore, while net interest margins (NIMs) came in at 3.34 per cent, compared with 3.22 per cent a year ago.

It earned interest to the tune of Rs 66,814.11 crore compared with Rs 64,312.39 crore a year ago.

The bank's gross NPAs came in at 5.28 per cent against 5.44 per cent in the preceding quarter and 7.19 per cent in the same quarter a year ago.

Net NPAs for the quarter stood at 1.59 per cent against 1.86 per cent in the June quarter and 2.79 per cent a year ago.

The lender’s capital adequacy ratio stood at 14.72 per cent at the end of September, compared with 13.40 per cent at the end of June, and 13.59 per cent in corresponding quarter last year.

The bank said it has made a provision of Rs 2,124 crore towards employee wage revision during the quarter and an additional provision of Rs 239 crore on Covid-related accounts.

The bank’s credit growth stood at 6.02 per cent YoY, mainly driven by retail (personal) advances (14.55 per cent YoY), agri advances (4.19 per cent YoY) and corporate advances (2.82 per cent YoY).

Share of SBI lost ground after the earnings announcement, and were down 0.71 per cent at Rs 203.30, while benchmark Sensex was up 0.40 per cent at 40,420.