SBI Bank - Q2 Results

SBI Bank - Q2 Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:43:30+05:30

For the quarter ended Sep-21, State Bank of India Ltd reported 6.05% growth in total revenues at Rs.1,01,143 crore. In terms of key verticals of SBI, the treasury and retail banking revenues were sharply higher while the revenues from wholesale banking was lower on a YoY basis. Insurance revenues were sharply higher YoY.
 

SBI Bank - Q2 Results
 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 1,01,143

₹ 95,374

6.05%

₹ 93,267

8.44%

Net Profit (Rs cr)

₹ 8,890

₹ 5,246

69.46%

₹ 7,380

20.46%

Diluted EPS (Rs)

₹ 9.96

₹ 5.88

 

₹ 8.27

 

Net Margins

8.79%

5.50%

 

7.91%

 


The operating profits of the SBI wholesale banking and retail banking business were sharply higher. However, operating profits from treasury and insurance were almost flat YoY. In the case of insurance, the revenue growth was offset by higher claims and provisions.

Net Interest income or NII grew 10.65% while the NIM expanded 16 bps at 3.50%. This is a smart improvement although it is still below private sector counterparts. Credit costs declined sharply by 51 bps in line with falling rates and better transmission to 0.43% even as cost to income ratio fell 106 bps to 54.10%.
For the September 2021 quarter, SBI reported PAT up 69.5% at Rs.8,890 crore.

This was largely triggered by the provisions for doubtful debts falling sharply to Rs.615 crore in Sep-21 quarter compared to Rs.11,221 crore in the Sep-20 quarter. This largely compensated for the exceptional loss that SBI had to take in the current quarter of Rs.7,418 crore on account of payment of family pensions under the bipartite agreement.

Asset quality has surely improved in the quarter with the gross NPAs down 38 bps at 4.90% while net NPAs were down 7 bps at 1.52%. On the positive side, the provision coverage ratio or PCR of the bank stood at 87.68%.

Slippages in the quarter fell sharply from 2.47% to 0.66% in the latest quarter. Quarterly ROA was a good 18 bps higher at 0.61% while the return on equity for SBI (a key metrics in valuations) or the ROE was up 423 bps at 13.17%.


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