new Delhi. State Bank of India (SBI) 's single net profit for the first quarter (April-June 2020) of the current financial year increased by 81 per cent to Rs 4,189.34 crore. The bank's profits have increased due to dwindling debt and sale of minority stake in its subsidiary SBI Life Insurance. The bank had made a net profit of Rs 2,312.02 crore in the same quarter of the previous financial year 2019-20. While announcing the first quarter results, the bank said that the June quarter profit also included Rs 1,539.73 crore from the sale of 2.1 per cent stake in SBI Life Insurance Company.
The bank's stake in SBI Life has now come down from 57.70 percent to 55.60 percent. In a communication sent to the stock exchanges, the country's largest bank said that its single total income rose to Rs 74,457.86 crore during the quarter, from Rs 70,653.23 crore in the same quarter of the previous financial year. The bank's operating profit rose 36 percent to Rs 18,061 crore during the quarter, from Rs 13,246 crore in the same quarter of the previous fiscal.
The bank's interest income rose six percent to Rs 66,500 crore during the quarter under review, from Rs 62,638 crore in the same quarter last fiscal. The bank's net interest margin declined to 3.01 percent during the period, from 3.24 percent in the first quarter of the previous financial year. The bank's gross non-performing assets (NPAs) declined to 5.44 per cent during the quarter, from 7.53 per cent in the same period last fiscal. Similarly, the bank's net NPA declined to 1.8 percent from 3.07 percent a year earlier. As a result, the bank's provision for submerged debt came down to Rs 9,420.46 crore from Rs 11,648.45 crore a year ago.
During the quarter, the bank made an additional provision of Rs 1,836 crore in view of Kovid-19. The bank said that this provision is in line with the Reserve Bank's guidelines. The bank had a provision coverage ratio of 86.32 percent at the end of the June quarter. The capital adequacy ratio improved to 13.40 percent. SBI's net profit on an integrated basis rose 62 per cent to Rs 4,776.50 crore during the quarter from Rs 2,950.50 crore in the same quarter of the previous fiscal. The consolidated total income of the bank rose to Rs 87,984.33 crore during the quarter, from Rs 83,274.04 crore in the first quarter of the last financial year.
This post was published on August 1, 2020 2:22 am
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