State Bank of India - Quarterly results 2021

State Bank

State Bank of India reported 6% rise in consolidated revenues in the Jun-21 quarter at Rs.93,267 crore with a spike in treasury and insurance revenues while retail and wholesale banking were flat to positive. The bank reported record standalone net profits of Rs.6,504 crore with operating profits at Rs.18,975 crore. Consolidated PAT for the quarter stood at Rs7,380 crore. NII was up 3.74% while NIMs were slightly lower at 3.15% in the Jun-21 quarter.

 

Rs in Crore

Jun-21

Jun-20

YOY

Mar-21

QOQ

Total Income

₹ 93,267

₹ 87,984

6.00%

₹ 1,03,431

-9.83%

Net Profit

₹ 7,380

₹ 4,777

54.50%

₹ 6,126

20.48%

Diluted EPS

₹ 8.27

₹ 5.35

 

₹ 6.86

 

Net Margins

7.91%

5.43%

 

5.92%

 

Gross NPA Ratio

5.32%

5.44%

 

4.98%

 

Capital Adequacy

13.66%

13.40%

 

13.74%

 

 

In the Jun-21 quarter, deposits grew 8.8% while domestic credit grew by 5.64%. This included a 10.98% growth in home loans, now comprising 23% of SBI overall loan book. During the Jun-21 quarter, the slippage ratio stood higher at 2.47% but the profit got a big boost as the cost to income ratio fell by 261 bps to 51.89%. 

A major contributor to the net profits in the quarter was the 16.3% fall in loan loss provision at Rs.10,510 crore. Credit costs were actually lower by 77 bps to 0.79%, resulting in ROE getting a boost of 357 bps to 12.12%.

There was a 34 bps increase in gross NPAs at 5.32%, but on the positive side the return on assets or ROA at 0.57% is very stable and attractive. The provision coverage ratio was marginally lower at by 39 bps at 85.93%. However, capital adequacy at 13.66% could require continuous capital buffer infusion.

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