SBI logs its highest-ever quarterly profit at Rs 6,504 Cr in Q1, up 55% YoY
State Bank of India (SBI) recorded a 55 percent year-on-year (YoY) increase in net profit during April-June (first quarter or Q1) of FY22, compared to Rs 4,189.34 crore the previous year.
In the reporting period, Bloomberg experts predicted a net profit of Rs 5,855 crore.
Following the release of the quarterly results, the lender’s stock rose 2.37 percent to Rs 457.05 on the BSE.
The state-owned bank’s net interest income (NII) increased 3.74 percent year on year to Rs 27,638 crore in Q1 2020-21, up from Rs 26,642 crore the previous quarter (FY21). The slow growth in NII is that the yield on advances has decreased, indicating that there is a lot of money floating around in the market, according to the bank’s management.
Its domestic net interest margin, a gauge of profitability, shrank by nine basis points to 3.15 percent. Non-interest income increased by 24.28 percent to Rs 11,803 crore, owing to a 20.86 percent increase in fee income year over year. In this quarter, the bank also recovered Rs 1,692 crore from Kingfisher Airlines’ account.