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Monday, November 30, 2020

SBI Q2 net profit rises 51.88% on improved asset quality

While overall asset quality improved, bad loans in the agriculture sector rose to Rs 31,234 crore (14.8 per cent) in the September quarter of 2020-21 from Rs 27,577 crore (13.62 per cent) a year ago.

By: ENS Economic Bureau | Mumbai | Updated: November 5, 2020 2:18:27 am
A view of State Bank of India (SBI) bank branches and ATMs prior to announcing it's earnings in the city of Bangalore, India on 7th May, 2019. Photography by Karen Dias/Bloomberg

Aided by lower provisions, improvement in asset quality and better net interest margins, State Bank of India (SBI) on Wednesday reported a 51.88 per cent rise in net profit at Rs 4,574 crore in the September quarter of 2020-21 as against Rs 3,011 crore in the same period of the previous fiscal.

However, the state-owned bank has cautioned that total slippages and restructuring book could rise to Rs 60,000 crore (2.5 per cent of advances) by end of FY21. Gross non-performing assets (NPAs) stood at 5.28 per cent of advances (Rs 1,25,863 crore), as compared to 7.19 per cent (Rs 161,636 crore) in the year-ago quarter. SBI reported net NPAs of 1.59 per cent of total assets, as compared to 2.79 per cent in the same quarter of the previous year.

While overall asset quality improved, bad loans in the agriculture sector rose to Rs 31,234 crore (14.8 per cent) in the September quarter of 2020-21 from Rs 27,577 crore (13.62 per cent) a year ago.

SBI Chairman Dinesh Khara said collection efficiency in domestic loan book (excluding the agriculture segment) as at the end of Q2 of FY21 was at 97 per cent.

Khara said the bank has received debt recast requests of Rs 6,495 crore.

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