Profit companies

Sbi reports highest quarterly profit ever, but misses estimates

India’s largest bank State Bank of India (SBI) on Friday announced a 41% increase in its autonomous net profit to 9,113.5 crore for the quarter ended March 2022, its highest quarterly profit on record, but missed analysts’ estimates as bad debt provisions rose sequentially. The lender had reported a profit of 6,450.7 crores in the prior year quarter.

SBI’s net interest income (NII), the difference between interest earned and interest spent, increased 15% to 31,198 crores during Q4FY22 from 27,067 crore year-on-year (YoY). Domestic net interest margin (NIM) for Q4FY22 increased 29 basis points year-on-year to 3.40%.

The total provision for risks including those for bad debts amounts to 7,237 crores compared to 6,974 crore from the previous quarter and 11,051 crore (Annual).

The public lender’s asset quality improved, with gross non-performing assets (NPA) representing 3.97% of total assets, down from 4.50%, while net NPA stood at 1.02% versus 1.34% quarter over quarter (QT).

SBI’s Provision Coverage Ratio (PCR) improved by 416 basis points year-on-year to 75.04%. The PCR (including AUCA) is 90.20%. Meanwhile, its slippage ratio for the fourth quarter was 0.43%.

The board declared a dividend of 7.10 per share (710%) for the financial year ended March 31, 2022. The registration date for said dividend was set for Thursday May 26, 2022.

On a consolidated basis, the bank recorded a 56% increase in net profit to 9,549 crore, compared to 6,126 crores in the fourth quarter of the prior year.

SBI shares were trading up 2% at 473 each on BSE in Friday afternoon bids. The banking stock is down 0.3% year-to-date (YTD).

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