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Sbi Q1 net profit drops 6.7% to Rs 6,068.1 Crore, Misses Street Estimates


By CNBCTV18.COM STI (Update)

The State Bank of India (SBI) on Saturday reported a 6.7% year-on-year drop in net profit for the quarter ended June 30, 2022 to Rs 6,068.1 crore. The net profit missed analysts’ expectations of Rs 7,688.2 crore profit.

#SBI announces 6.7% decline in Q1 net profit to ₹6,068.1cr from ₹6,504cr (y/y)

Operating profit was hit by market valuation losses on the bank’s investment portfolio, which also impacted its return on assets and return on equity, key financial measures, a SBI said in a statement after its regulatory filing.

The lender’s gross and net NPAs increased by 1% each to Rs 1.13 lakh crore and Rs 28,257.9 crore respectively.

Other income amounted to Rs 2,312 crore. During the quarter, the cost/income ratio increased to 61.94% from 51.89% year-on-year and from 54.23% quarter-on-quarter. Operating profit was weak at Rs 12,753 crore, down 32.8% YoY and 35.3% QoQ.

Provisions amounted to Rs 4,392 crore, down 56.3% year-on-year and 39.3% quarter-on-quarter.

On earnings, SBI Chairman Dinesh Kumar Khara said much of the quarter remained dominated by inflation and currency concerns.

“Our subsidiaries continue to create significant value for customers and shareholders,” he said.

SBI stock price has risen 11% in the past month and is now near its 52-week high. On Friday, SBI share price ended at Rs 532 per share.

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