SBI Q1 Results: State Bank of India (SBI) reported strong numbers for the June quarter, with net profit rising 12.5 per cent from last year to Rs 19,160 crore, compared to Rs 17,035 crore in the same quarter of the previous year. The figure came in above Zee Business’ estimate of Rs 17,010 crore.
The bottom-line beat was helped by lower provisions and steady asset quality, even as interest margins came under pressure.
Net interest income (NII) was Rs 41,073 crore, almost flat compared to Rs 41,126 crore last year and remained below the estimate of Rs 42,040 crore. Margins narrowed to 3.02 per cent, down from 3.35 per cent a year ago.
SBI asset quality holds; provisioning down QoQ
Gross NPA stood at 1.83 per cent, slightly higher than 1.80 per cent in the previous quarter. Net NPA was unchanged at 0.47 per cent.
The bank made provisions of Rs 4,759 crore, lower than Rs 6,440 crore in the March quarter but higher than Rs 3,450 crore a year ago. Zee Business had expected Rs 4,300 crore.
What the bank is saying
Management has maintained its margin guidance at above 3 per cent, but with deposit costs rising and the rate cycle turning, analysts expect some pressure to continue. SBI is seeing strong demand in its Xpress Credit product, and says its corporate loan pipeline and NRI deposit base remain strong. Retail lending continues to gain market share.
SBI stock performance
The stock hasn’t moved much in the near term — down 1.22 per cent over the past year — but has delivered solid gains over longer periods:
3-year return: up by 50.4 per cent
5-year return: up by 319 per cent
10-year return: up by 184 per cent
SBI shares were down by 1.56 per cent as of 13:29 PM on Friday.
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