The country’s biggest state-owned lender, State Bank of India (SBI), on Friday reported 41.2 per cent year-on-year (YoY) rise in net profit at Rs 9,113.5 crore for the quarter ended March 31, 2022 (Q4FY22). The lender also announced dividend of Rs 7.10 per share.
“The Central Board of the Bank, at its meeting held on 13th May,2022, has declared a Dividend of Rs 7.10 per equity share (710 per cent) for the financial year ended 31 March, 2022.The date of payment of Dividend is fixed on June 10, 2022,” it said in a statement.
The bank had clocked net profit of Rs 6,451 crore in the year-ago period (Q4FY21). Sequentially, SBI’s profit grew 8 per cent from Rs 8,432 crore in Q3FY22, driven primarily by a healthy increase in net interest income (NII).
NII – a bank’s main source of income – soared 15.26 per cent to Rs 31,198 crore during the quarter, as against Rs 27,067 crore earned in Q4FY21. On a quarterly basis, NII rose 1.6 per cent from Rs 30,687 crore reported in Q3FY22.
“As per the directions of the Supreme Court, which said that there shall not be any charge of interest on interest/compound interest/penal interest for the period during the moratorium from March 1, 2020 to August 31, 2020, SBI has reversed interest income by Rs 830 crore during the year ended March 31, 2022,” SBI said.
The numbers, however, missed Street estimates, which was expecting the net profit to rise in the range of 63-72 per cent YoY to come in between Rs 10,493 crore and Rs 11,056.7 crore. NII, meanwhile, was estimated to rise up to 19 per cent YoY and 5 per cent QoQ growth at Rs 32,100 crore.
Domestic NIM for Q4FY22 increased by 29 bps YoY at 3.40 per cent.
Meanwhile, SBI’s asset quality improved on a sequential basis with gross non-performing assets (GNPA) standing at Rs 1.12 trillion as against Rs 1.2 trillion in Q3FY22. Net NPA, too, slipped to Rs 27,966 crore as against Rs 34,540 crore in the previous quarter.
GNPA and NNPA ratios, too, improved by 53 bps and 32 bps QoQ to 3.97 per cent and 1.02 per cent, respectively.
SBI has set aside provisions worth Rs 7,237.45 crore, of which provisions for NPA stand at Rs 3,261.7 crore for the quarter. This is higher than provision (for NPA) worth Rs 3,069 crore set aside in Q3FY22.
“Bank’s management is not expecting any significant impact on liquidity or profitability. On the basis of the aforementioned assessment, during the quarter ended March 3I, 2022, the existing Covid provision of Rs 6,183 crore has been utilized towards additional provisions against restructured assets,” it added.
Provision Coverage Ratio (PCR) as at March 31, 2022 is 90.20 per cent.
Loans and deposits
SBI’s loan book stood at Rs 28.18 trillion at the end of March 31, 2022 as against 25.39 trillion in the year-ago period, clocking a growth of 11 per cent YoY. Sequentially, credit book improved 5.78 per cent from Rs 26.64 trillion.
Of this, retail loans grew 15.11 per cent YoY while corporate loans increased 6.35 per cent YoY.
On the bourses, shares of SBI zoomed 3 per cent intra-day to Rs 477, before paring gains to Rs 468 per share. In comparison, the BSE Sensex was up 1.3 per cent at 2 PM.