SBI Q4 net profit jumps 41% on fall in bad loans
NEW DELHI: The country’s largest lender, State Bank of India, on Friday reported a 41% jump in standalone net profit at ₹9,114 crore for the fourth quarter ended March 2022, helped by a decline in bad loans.
The bank had registered a profit of ₹6,451 crore during January- March period of 2020-21, the lender said in a regulatory filing.
SBI’s total income during the March quarter increased marginally to ₹82,613 crore, from ₹81,327 crore in the year-ago period.
During the quarter under review, net interest income rose 15% to ₹ 31,198 crore, from Rs27,067 crore in the same period a year ago.
On a consolidated basis, the bank reported a 56% increase in net profit at ₹9,549 crore, compared to ₹ 6,126 crore in the fourth quarter of financial year 2020-2021.
With regard to asset quality, gross non-performing assets (NPAs) of the bank declined to 3.97% of gross advances as on March 31, 2022, as against 4.98% by the same period of 2021.
In absolute terms, gross NPAs declined to ₹1,12,023 crore in March 2022 from ₹ 1,26,389 crore in the same period last year, SBI said.
Net NPAs or bad loans also came down to 1.02% as on March 31, 2022, from 1.50% in the year-ago period.
The net NPAs in absolute terms eased to ₹27,966 crore, from ₹36,810 crore in March 2021.
As a result, the provision for bad loans declined to ₹3,262 crore, compared to ₹9,914 crore in the fourth quarter of financial year 2020-2021.
For the entire financial year 2021-22, the bank reported a 55% rise in standalone profit at ₹ 31,676 crore, from ₹ 20,410 crore in the financial year 20202021.
The board has recommended a dividend of ₹7.10 per share or 710% on the face value for the financial year ended March 31, 2022.
The date of payment of dividend is fixed on June 18, 2021 and the dividend warrants will be dispatched before the date of payment, which will be payable at par at all branches of State Bank of India, irrespective of the amount, it said.
During the year, the net interest margin or the spread improved to 3.40% from 3.11% in the previous fiscal.
The capital adequacy ratio (CAR) improved to 13.83% as on March 2022, against 13.74% in the previous fiscal.
The shares of SBI closed at ₹445.05 each, down 3.76% on BSE.