During this period, the country’s premier bank’s total income has risen by 27.83 per cent at Rs 12,229.09 crore for the June quarter against that of Rs 9,566.79 crore in the same period year ago.
Pressure on margin
SBI Chairman O P Bhatt said even as the bank will focus on retail in the coming quarters to maintain margins, “margins will be under pressure as they have not been able to contain cost inflation.” He pointed out that the advances in Q1 has grown by 29 per cent and non-interest income grew by 18.74 per cent.
As a group, SBI has posted a consolidated net profit of Rs 1,861.66 crore after minority interest for the first quarter as against Rs 963.01 crore for the same period last fiscal. The consolidated turnover of the group stood at Rs 18,882.68 crore for the April-June quarter compared to that of Rs 14,118.97 crore for the corresponding period a year ago. Further, Mr Bhatt said the net interest income (NII) of the bank was up by 15 per cent on year-on-year (y-o-y) basis, which is largely in-line with estimates and with expansion in yield on advances leading improvement in margins to 3.35 per cent including CRR deposits. In effect, advances grew 28.89 per cent leading to expansion in net interest income.
Better management
Gross NPA ratio of SBI declined from 3.64 to 3.13 per cent, while Net NPA ratio declined from 1.84 to 1.62 per cent keeping asset quality intact and capital adequacy ratio (CAR) stood at 13.13 per cent and Tier I at 8.32 per cent. The bank added Rs 2,523.5 crore by way of Upper Tier-II subordinated debt, which helped the bank improve its CAR.