SBI (State Bank of India) on Friday reported quarter 4 huge net profit of ₹3,375.40 crore. It is remarkable, the profit grew 326.93 per cent from Rs 838 crore clocked in the year-ago quarter (Q4FY19). The shares of the bank jumped 9 per cent higher post the results to Rs 189.8 on the BSE. In comparison, the S&P BSE Sensex was at 34,303 level, up 322 points or 0.95 per cent.
State Bank of India’s (SBI) total income rose to ₹89,347.91 crore in the quarter under review, compared to ₹79,302.72 crore in the year-ago period. According to Motilal Oswal SBI is expected to post an April-June Net interest income of ₹24,356 crore, up 6.2% y-on-y. Motilal also said The bank’s NPL formation run-rate has moderated significantly which is witnessed during FY18. He also expects uptick in core operating performance which will further push earnings growth. On 7th July credit Suisse said in a note that June quarter earnings of banks will highlight “widening growth divergence among various lenders”. The bank’s net profit was ₹576.46 crore in the July- September LYF (last fiscal year).
Covid-19 and its consequences
The impact of covid-19 on SBI, slowed loan growth due to merger integration, higher proportion of moratorium and delay in the resolution of national company law tribunal (NCLT) accounts are restricting it from additional earning.