SBI Q4 net rises 80% to ₹6,451 cr.

Board declares ₹4 dividend; Lender skips FY22 guidance

State Bank of India’s (SBI) reported fourth-quarter net profit surged 80% overt the year-earlier-period to ₹6,451 crore on account of an improvement in all parameters, Chairman Dinesh Kumar Khara said.

“There was an improvement in all areas and we expect the momentum to continue,” Mr. Khara said in a virtual conference. “We are hoping that the second wave [of COVID-19] will wane soon.”

Mr. Khara, however, did not give any guidance for FY22 saying the current situation was fluid. He said the bank managed to bring its expenses, other than employee costs, under control.

For FY21, net profit rose 41% to ₹20,410 crore. Mr. Khara said the asset quality for the full year was ‘better than expected.’ The board declared a dividend of ₹4 per equity share (400%) for FY21.

For the fourth-quarter, net interest income rose 19% to ₹27,067 crore and non-interest income by almost 1% to ₹16,225 crore. Interest income increased by almost 4% to ₹65,102 crore. Domestic net interest margin increased 176 bps.

During the quarter, loan-loss provisions reduced 16.6% to ₹9,914 crore.

Gross advances increased 4.8% to ₹25,39,393 crore even as large corporates reduced their borrowing as most shifted to corporate bond markets to mobilise resources. However, mid corporates and MSMEs continued their borrowings, bank executives said.

Domestic corporate advances reduced 3% to ₹8,18,705 crore. Domestic retail personal advances increased 16.5% to ₹8,70,711 crore of which housing loans accounted for ₹5,03,799 crore, up 10.5%. Including the YoY growth in corporate bonds of ₹51,811 crore, the loan book grew 6.5% YoY.

Total deposits grew 13.6% to ₹36,81,277 crore.

Gross non-performing assets (GNPA) dropped 15.2% to ₹1,26,389 crore. Net NPA was down 29% to ₹36,810 crore. Slippages surged 170.6% to ₹21,934 crore.

For the quarter, the bank made additional provisioning of ₹11,051 crore of which provisioning for NPA was ₹9,914 crore compared with ₹11,894 crore.

Slippages ratio for FY21 had declined to 1.2% from 2.2% as at the end of FY20. Credit cost as at the end of FY21 declined 75 bps YoY to 1.12%.

Cost to income ratio has marginally increased from 52.5% in FY20 to 53.6% in FY21.Capital Adequacy Ratio (CAR) improved by 68 bps YoY to 13.7% as on March.

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