Benzinga - India’s biggest public sector bank, State Bank of India (NS:SBI), posted its first-quarter results on Saturday, with its net profit rising just 0.89% but still managing to beat estimates.
What Happened: SBI’s standalone net profit for the quarter ended June 30 stood at ₹17,035.16 crore, compared with the ₹16,884.3 crore it had earned a year ago. The figure exceeded Bloomberg estimates of ₹16,595 crore.
The bank’s net interest income, which is the difference between the interest it pays on deposits and the interest it earns on loans, rose to ₹41,125 crore, a 5.7% growth from the ₹38,904.9 crore it earned in the same quarter last year. The number fell slightly short of analyst expectations of ₹42,614 crore.
The lender’s net interest margin, a key profitability metric, shrank to 3.22%, down 11 basis points from the 3.33% that the bank posted in the first quarter a year ago.
Gross advances grew 15.39% to ₹38.12 lakh crore, while total deposits climbed 8.18% to ₹49.01 lakh crore.
Price Action: Ahead of the results, SBI’s share price ended 1.73% lower at ₹847.75 at the end of trading on Friday.
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