State Bank of India (SBI) on Friday reported an 81 per cent rise in net profit at Rs 4,189.3 in April-June quarter of fiscal 2020-21
State Bank of India (SBI) on Friday reported an 81 per cent rise in standalone net profit at Rs 4,189.3 in April-June quarter of fiscal 2020-21 as against Rs 2,312.20 crore in the corresponding period last year. The public sector lender reported a one-time gain of Rs 1,539.7 crore in the quarter under review, SBI said in an exchange filing. In June, SBI sold 2.1 percent stake in SBI Life through offer for sale route. Net interest income (NII) stood at Rs 26,641.6 crore in Q1FY21 compared to Rs 22,938.8 crore in the year-ago period.
The bank made total provisions worth Rs 12,501.30 crore during the quarter under review. "During quarter one of FY2020-21, the bank has made an additional provision of Rs 1,836 crore on account of Covid-19 related accounts. The provision of Rs 3,008 crore is held by the bank on Covid-19 related accounts as on June 30, 2020," the bank said.
The bank made provision for a balance amount of Rs 5,230.4 crore towards fraud accounts. Provision coverage ratio was recorded at 86.32 pet cent as of June 30. SBI reported fresh slippages at Rs 3,637 crore as against Rs 8,101 crore (QoQ). Provisions came in at Rs 9,420.5 crore as against Rs 11,648.5 crore (YoY).
SBI's asset quality improved on a sequential basis. Gross NPA stood at Rs 1.29 lakh crore in Q1FY21 compared to Rs 1.49 lakh crore in Q4FY20. Net NPA stood at Rs 42,703 crore in the quarter under review compared to Rs Rs 51,871 crore in the fourth quarter of fiscal 2020-21.
"The spread of COVID-19 across the globe has resulted in decline in economic activity and increase in volatility in financial markets. ln this situation, though the challenges continue to unfold, the Bank is gearing itself on all fronts to meet the same. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. Major challenges for the Bank would arise from extended working capital cycle and waning cash flows. Despite these conditions, there would not be any significant impact on the liquidity and profitability of the Bank," SBI said.
Shares of SBI were trading at Rs 192.80, up Rs 6.25, or 3.35 per cent on NSE at the time of reporting.