Now Reading: SBI Q1 net profit jumps 10.2% to Rs 21,121 crore
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SBI Q1 net profit jumps 10.2% to Rs 21,121 crore
State Bank of India reported a standalone net profit of Rs 21,121 crore for the June quarter, up 10.2% from a year ago. Net interest income rose nearly 15% to Rs 46,992…
The Story in Brief
State Bank of India reported a standalone net profit of Rs 21,121 crore for the June quarter, up 10.2% from a year ago. Net interest income rose nearly 15% to Rs 46,992 crore, driven by 18.6% growth in gross advances. The bank's gross NPA ratio improved to 1.47% from 1.49% in the previous quarter.
However, fresh slippages rose to Rs 7,359 crore from Rs 5,548 crore quarter-on-quarter, pushing the slippage ratio up. Provisions increased to Rs 5,047 crore from Rs 2,872 crore in the preceding quarter. The Hindu reports a consolidated net profit of Rs 24,113 crore, up 13.7%, attributing the difference to subsidiary income. SBI's domestic net interest margin stood at 3%, while whole-bank NIM expanded 5 basis points to 2.86%.
The Indian Opinion
The narrative that SBI is firing on all cylinders glosses over the rise in fresh slippages and provisions. While asset quality ratios look better, the jump in slippages from Rs 5,548 crore to Rs 7,359 crore is a warning. The bank's ability to maintain its 14-15% credit growth guidance without letting deposit costs spiral will be the real test. Watch next quarter's slippage number to judge if this is a blip or a trend.
Sources (5): livemint.com, ndtvprofit.com, thehindu.com, economictimes.indiatimes.com, timesnownews.com
This story was synthesised by AI from the 5 sources linked above.
Updated: this story now draws on 5 sources.
