After six quarters, SBI returns to profit in Q1

Mumbai, Aug 8 :

India’s largest government-owned State Bank of India (SBI) returned to profit after six quarters, posting Rs.3,349 crore net for first quarter (April-June) of this fiscal (2014-15), a 3.3 percent year-on-year (YoY) growth over same period a year ago at Rs.3,241 crore.

“Total interest income increased 15.03 percent YoY to Rs.36,487 crore in the quarter under review (Q1) from Rs.31,718 crore year ago, while net interest income grew 15.12 percent YoY to Rs.13,252 crore from Rs.11,512 crore year ago,” the bank said in a statement here Friday.

Similarly, operating profit increased 16.4 percent YoY to Rs.8,788 crore from Rs.7,551 crore year ago and operating income rose 9.5 percent YoY to Rs.17,504 crore from Rs.15,986 crore year ago.

Net interest margin (NIM) increased 10 basis points to 3.54 percent from 3.44 percent.

“In terms of asset quality, the bank’s gross non-performing assets (NPA) ratio declined 66 basis points (0.6 percent) to 4.9 percent or Rs.60,434 crore from 5.56 percent or Rs.60,891 crore year ago.

Net NPA also decreased 17 basis points to 2.66 percent from 2.83 percent year ago.

Interest income on advances increased 15.6 percent YoY to Rs.27,560 crore from Rs.23,846 crore, while interest payment on deposits was also 15.6 percent higher YoY at Rs.20,906 crore as against Rs.18,086 crore in like period year ago.

“The bank’s total deposits grew 12.9 percent YoY to Rs.14,18,915 crore from Rs.12,57,389 crore year ago, while gross advances increased 12.5 percent YoY to Rs.12,32,288 crore from Rs.10,95,145 crore,” the statement said.

As a result, the banka¿s credit-deposit ratio declined 90 basis points (0.9 percent) to 77.9 percent from 78.8 percent year ago.

Average cost of deposits increased marginally to 6.28 percent from 6.21 percent year ago while yield on advances improved marginally to 10.58 percent from 10.23 percent year ago.

(IANS)