SBI posts highest quarterly profit
Three state owned banks that posted their March quarter numbers on Friday reported a steady set of numbers with robust growth momentum and improved asset quality numbers. Slippages moderated on a quarter-on-quarter basis with on ground conditions and cash flows of borrowers improving.
India’s largest lender State Bank of India (SBI) reported its highest quarterly net profit of Rs 9,114 crore in the quarter ended March 31, 2022, witnessing a growth of 41.28 per cent year-on-year. The net profit for FY22 grew by 55.19 per cent YoYto Rs 31,676 crore.
Similarly, State-owned Bank of Baroda reported a net profit of Rs 1,779 crore in the quarter ended March 2022 compared to a net loss of Rs 1,047 crore in the same quarter of FY21. Stateowned Union Bank of India reported an 8.3 per cent year-on-year rise in net profit for the March quarter backed by robust net interest income and a stake sale in its insurance subsidiary India First Life Insurance Company during March for Rs 627 crore. UBI’s net profit for the March 2022 quarter stood at Rs 1,440 crore against Rs 1,330 crore in the year-ago period.
SBI’s net interest income (NII) during January-March 2022 rose
15.26 per cent to Rs 31,198 crore, against Rs 27,067 crore in the year-ago period. The domestic NIM for
Q4FY22 improved by 29 basis points at 3.40 per cent. The gross NPA ratio was down by 101 bps YoY at 3.97 per cent, while the net NPA ratio down by 48 bps YoY at 1.02 per cent. The provision coverage ratio (PCR) improved by
416 bps YoY at 75.04 per cent. The slippage ratio for Q4FY22 improved to
0.43 per cent compared to
3.57 per cent in Q4FY21. “The central board of the bank, at its meeting held on May 13, 2022, has declared a dividend of Rs
7.10 per equity share for the financial year ended March 31, 2022," SBI said.
“We are targeting a Return on Equity of 15 per cent by 2024,” Dinesh Khara, chairman SBI told reporters at a press conference.
Bank of Baroda’s total income during the January-March period of
2021-22 was down at Rs
20,695.90 crore as against Rs 21,501.94 crore in the same period of 2020-21.
For the full financial year
2021-22, BoB reported a net profit of Rs 7,272.28 crore, a nine times jump from Rs 828.95 crore in
2020-21. Net interest margin (NIM) for Q4FY22 was
3.08 per cent, an increase of 36 bps compared to
Q4FY21. Gross non-performing assets fell to 6.61 per cent of the gross advances by the end of March 2022, from 8.87 per cent by end of March
2021. In value terms, the gross NPAs were at Rs
54,059 crore, down from Rs 66,671 crore. BoB said its board has also approved raising additional capital of up to Rs
2,500 crore by way of additional tier I or tier II debt capital instruments with interchangeability option, issued in India/ overseas in suitable tranches up to March 31,
2023. The board of the bank has recommended a dividend of Rs 1.20 per equity share for the 202122 subject to declaration/approval at the ensuing annual general meeting, the bank said.
Union Bank’s net interest margin improved 37 basis points to 2.75 per cent in the reporting quarter.
Net interest income rose 25.3 per cent at Rs
6,769 crore. Its asset quality improved with the gross non-performing assets ratio falling to
11.11 per cent at the end of March as compared with 13.74 per cent a year back. The net NPA ratio improved to 3.68 per cent against 4.62 per cent.