SBI Q1 Net Profit Surges 55% To Rs 6504 Crore, The Highest In A Quarter

The rise in profit was reported despite a 1.4% fall in interest income to Rs 65,564 crore, aided by a 4.85% fall in interest expenses to Rs 37,926 crore during the quarter.

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Mumbai: India's largest lender, State Bank of India (SBI), has registered its highest quarterly net profit of Rs 6,504 crores in the first quarter ending June, registering a growth of 55.25% YoY due to lower provisions for bad loans.

The rise in profit was reported despite a 1.4% fall in interest income to Rs 65,564 crore, aided by a 4.85% fall in interest expenses to Rs 37,926 crore during the quarter.

During the quarter, the state-owned lenders' operating profit increased by 5.06% to Rs 18,975 crores from Rs 18,061 crores in the year-ago period. The operating profit excluding exceptional items increased by 14.85%.

The lender's net interest income, which is the difference between interest earned and interest paid, increased 3.74% YoY to 27,638 crores during the quarter. In the same quarter last year, the NII was Rs 26,641 crore.

Domestic NIM for Q1FY22 at 3.15% has declined by nine bps YoY. Bank's Non-Interest Income for Q1FY22 at Rs 11,803 crores grew by 24.28% YoY.

Bank's domestic credit growth stood at 5.64% YoY, mainly driven by Retail (Personal) Advances (16.47% YoY), Agri Advances (2.48% YoY), and SME (2.01% YoY).

Home loan, which constitutes 23% of bank's domestic advances, has grown by 10.98% YoY.

SBI's Net NPA ratio stood at 1.77%,  down nine basis points (bps) YoY, while the gross NPA ratio stood at 5.32%, down 12 bps YoY.

The bank had loan loss provisions of Rs 5,030 during the quarter compared to Rs 9,420 in the year-ago period. Provisions are the funds that a bank must set aside to cover loan account losses. When an account becomes delinquent, the provisions required equal the total loan amount.

SBI is the country's largest mortgage lender, having approved 30 lakh home loans so far. SBI has a 34.51% market share in home loans and a 32% market share in auto loans.

SBI shares on BSE were trading up 3.65% at Rs 462.75 in a firm Mumbai market on Wednesday afternoon, valuing the lender at Rs 4,12,986.4 crore.