Friday, August 8, 2014

#SBI Q1 net profit rises 3.3 per cent to Rs 3,349.08 crore

Country's largest bank State Bank of India (SBI) has reported a marginal 3.3 percent increase in net profit to Rs 3,349.08 crore for the quarter ended 30th June as against Rs 3,241.08 crore in the same period last year.

Provision for bad debts increased significantly to Rs 3,903.41 crore as against Rs 2,265.83 crore in the year-ago period.

Total income increased to Rs 40,739.21 crore during the quarter, against Rs 36,192.62 crore in the same period a year ago.

On a consolidated basis, the bank's net profit fell 3.3 percent to Rs 4,448.15 crore for the quarter ended 30th June, against Rs 4,298.56 crore in the year-ago period.
Its gross non-performing assets (NPAs) declined to 4.90 percent of total advances at the end of June, against 5.56 percent a year ago.

Net NPAs of the bank rose to Rs 31,883.80 crore (2.65 per cent) at the end of the first quarter, against Rs 29,989.84 crore (2.83 per cent) in the year-ago period

"NII (Rs.132.5 bn) came a shade above our expectations on the back of better than expected margin. Non-interest income was lower on back subdued trading gains (Q1FY14 was exceptional quarter), however, controlled opex (almost flat) and write back of Rs.5.5 bn of depreciation helped in mitigation the impact of higher NPA provisions (72% YoY). Reported headline NPA remained stable at 4.9%, despite higher slippage on back of higher cash recovery, up-gradation and write-offs. Nonetheless, fresh impairment remained lower at Rs.135 bn as against the run-rate of Rs.165.5 bn seen during previous 4 quarters. We retain our preference for SBI in PSU banking space.”

Saday Sinha, banking analyst, Kotak Securities