SBI Q1: Net Profit Widely Misses Street's Estimate; Asset Quality, Credit Growth

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SBI Q1: Net Profit Widely Misses Street's Estimate; Asset Quality, Credit Growth
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The country’s largest public sector bank and commercial lender State Bank of India (NS: SBI ) released its earnings results for the June 2022 quarter over the weekend, with the profit figure widely missing the Street’s estimates.

The lender’s net profit dipped 6.7% YoY to Rs 6,068 crore in the June quarter, missing the Street’s forecast by a huge margin. Analysts at Bloomberg had estimated a net profit of Rs 8,392 crore in the quarter.

The drop in bottomline was due to treasury losses. During the Apr-Jun period, the mark-to-market (MTM) losses totalled Rs 6,549 crore, which pulled the bank’s non-interest income down by 80.4% YoY to Rs 2,312 crore, resulting in a 32.8% YoY fall to Rs 12,753 crore.

The hit on MTM also adversely impacted the lender’s ROA and ROE, which stand at 0.48% and 10.09%, respectively, stated SBI.

SBI’s net interest income (NII) advanced 12.87% YoY to Rs 31,196 crore in Q1 FY23 while credit growth YoY is at around 14.93%.

The bank’s asset quality improved in the quarter, as the gross NPA ratio stood at 3.91% from 3.97% in the year-ago period, while the net NPA ratio dropped by 77 bps YoY at 1%. The PCR rose by 719 bps YoY at 75.05%.

The lender’s balance sheet size has exceeded the Rs 50 lakh crore mark during the June quarter.

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  • Rakesh Prasad @Rakesh Prasad
    Inflation hit the sbi!!! But i think this result wont impact too much as market already digesting inflation.
    Like 1
  • Devesh Raj Gupta @Devesh Raj Gupta
    global recession soon
    Like 3
    • Gsk Sathishkumar @Gsk Sathishkumar
      supposed if Global recession will come on next year 2nd half
      Like 0
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  • Maddula Bhanu @Maddula Bhanu
    buy for a year target of 800₹
    Like 3
    • Gsk Sathishkumar @Gsk Sathishkumar
      SBI TARGET 730 TO 800 KEEP ON BUYING
      Like 0
    • rakesh Bansal @rakesh Bansal
      Exit and wait for next quarter results
      Like 1
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