SBI Q4 profit jumps 80% to ₹6,451 cr
NEW DELHI: The country’s largest lender State Bank of India Ltd on Friday reported an 80% surge in standalone net profit at ₹6,450.75 crore for the fourth quarter ended March 2021, aided by decline in bad loans.
SBI had earned a profit of ₹3,580.81 crore during the January-march period of 2019-20, the lender said in a regulatory filing.
Total income of the bank during the March quarter of the last financial year rose to ₹81,326.96 crore, from ₹76,027.51 crore in the same period of 2019-20. During the quarter under review, net interest income rose 19% to ₹27,067 crore, from ₹22,767 crore in the year-ago period.
On a consolidated basis, the bank reported a 60% increase in net profit at ₹7,270.25 crore, compared to ₹4,557.49 crore in the fourth quarter of the financial year 2019-20.
With regard to asset quality, gross non-performing assets (NPAS) of the bank improved to 4.98% of gross advances as on March 31, 2021, as against 6.15% in the same period of 2020.
It further said that in absolute terms gross NPAS declined to ₹1,26,389 crore in March 2021, from ₹1,49,092 crore in the same period last year. Net NPA too came down to 1.5% as on March 31, 2021 from 2.23% in the yearago period. The net NPA in absolute terms eased to ₹36,810 crore
As a result, the provision for bad loans moderated by 17% to ₹9,914 crore, as compared to ₹11,894 crore in the fourth quarter of the previous fiscal.
However, slippages more than doubled to ₹21,934 crore, from ₹8,105 crore in the fourth quarter of the 2019-20. For the entire financial year 2020-21, the bank reported a 41% jump in standalone profit at ₹20,110.17 crore, from ₹14,488.11 crore in the previous financial year.
The board has recommended a dividend of ₹4 per share or 400% on the face value for the financial year ended March 31.
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.
The net interest margin or the spread improved to 3.26% from 3.19% in the previous fiscal.
Capital adequacy ratio improved by 68 basis points to 13.74% as on March 2021.
At the same time, the provision coverage ratio improved by 413 basis points to 87.75%, it said.
Shares of SBI closed at ₹401.10 per unit, up 4.30% on the Bombay Stock Exchange.