Net interest income, the difference between interest earned and interest expended, grew by 15 percent to Rs 13,253 crore in the first quarter of current financial year 2014-15 from Rs 11,512 crore in the year-ago period.
India's largest lender State Bank of India (SBI) surprised street with the first quarter (April-June) net profit rising 3.3 percent year-on-year to Rs 3,349 crore on higher net interest income though it was impacted by higher provisions, tax cost and lower other income. Net profit in the year-ago period was Rs 3,241.08 crore. Analysts had expected the bank to report net profit at Rs 2,824 crore and net interest income of Rs 13036 crore for the quarter. Net interest income, the difference between interest earned and interest expended, grew by 15 percent to Rs 13,253 crore in the first quarter of current financial year 2014-15 from Rs 11,512 crore in the year-ago period with the domestic net interest margin improving sequentially to 3.54 percent from 3.49 percent. However, global net interest margin continued to saw some pressure during the quarter, down to 3.13 percent compared to 3.17 percent in previous quarter (it was at same level in Q1FY14) and 3.19 percent in Q3FY14. Other income (non-interest income) could not support profits during the quarter, declined 5 percent on yearly basis to Rs 4,252 crore from Rs 4,474.3 crore in corresponding quarter of last fiscal. Asset quality (overall) continued to be stable during the quarter despite marginal rise on net basis. Gross non-performing assets (NPA) slipped 5 basis points sequentially and 66 bps on yearly basis to 4.90 percent while net NPA fell 17 bps year-on-year (up 9 bps quarter-on-quarter) to 2.66 percent in the quarter gone by. In absolute terms, gross NPA of the bank declined 1.9 percent Q-o-Q (down 0.75 percent Y-o-Y) to Rs 60,434 crore but net NPA increased 2.5 percent sequentially (up 6.3 percent yearly basis) to Rs 31,883 crore in the quarter ended June 2014. The public sector lender saw fresh restructuring of Rs 3,598 crore during the quarter, down compared to Rs 7,636 crore in previous quarter while fresh slippages were Rs 9,932 crore. Recoveries by the bank were Rs 3,185 crore and upgradations stood at Rs 1,362 crore in the quarter gone by, which both together were lower compared to Rs 8,843 crore in March quarter. The bank has written off loans worth Rs 6,556 crore in June quarter. Provisions dropped 30 percent quarter-on-quarter (up 72 percent year-on-year) to Rs 3,903 crore in June quarter with the provision coverage ratio at 62.7 percent at the end of June 2014. Advances of the lender shot up 13 percent year-on-year to Rs 11.989 lakh crore while deposits grew by 12.85 percent to Rs 14.19 lakh crore in April-June quarter. Tax expenses during the quarter increased by 34.5 percent to Rs 1,942 crore from Rs 1,444 crore in corresponding quarter of last fiscal.
India's largest lender State Bank of India (SBI) surprised street with the first quarter (April-June) net profit rising 3.3 percent year-on-year to Rs 3,349 crore on higher net interest income though it was impacted by higher provisions, tax cost and lower other income. Net profit in the year-ago period was Rs 3,241.08 crore. Analysts had expected the bank to report net profit at Rs 2,824 crore and net interest income of Rs 13036 crore for the quarter. Net interest income, the difference between interest earned and interest expended, grew by 15 percent to Rs 13,253 crore in the first quarter of current financial year 2014-15 from Rs 11,512 crore in the year-ago period with the domestic net interest margin improving sequentially to 3.54 percent from 3.49 percent. However, global net interest margin continued to saw some pressure during the quarter, down to 3.13 percent compared to 3.17 percent in previous quarter (it was at same level in Q1FY14) and 3.19 percent in Q3FY14. Other income (non-interest income) could not support profits during the quarter, declined 5 percent on yearly basis to Rs 4,252 crore from Rs 4,474.3 crore in corresponding quarter of last fiscal. Asset quality (overall) continued to be stable during the quarter despite marginal rise on net basis. Gross non-performing assets (NPA) slipped 5 basis points sequentially and 66 bps on yearly basis to 4.90 percent while net NPA fell 17 bps year-on-year (up 9 bps quarter-on-quarter) to 2.66 percent in the quarter gone by. In absolute terms, gross NPA of the bank declined 1.9 percent Q-o-Q (down 0.75 percent Y-o-Y) to Rs 60,434 crore but net NPA increased 2.5 percent sequentially (up 6.3 percent yearly basis) to Rs 31,883 crore in the quarter ended June 2014. The public sector lender saw fresh restructuring of Rs 3,598 crore during the quarter, down compared to Rs 7,636 crore in previous quarter while fresh slippages were Rs 9,932 crore. Recoveries by the bank were Rs 3,185 crore and upgradations stood at Rs 1,362 crore in the quarter gone by, which both together were lower compared to Rs 8,843 crore in March quarter. The bank has written off loans worth Rs 6,556 crore in June quarter. Provisions dropped 30 percent quarter-on-quarter (up 72 percent year-on-year) to Rs 3,903 crore in June quarter with the provision coverage ratio at 62.7 percent at the end of June 2014. Advances of the lender shot up 13 percent year-on-year to Rs 11.989 lakh crore while deposits grew by 12.85 percent to Rs 14.19 lakh crore in April-June quarter. Tax expenses during the quarter increased by 34.5 percent to Rs 1,942 crore from Rs 1,444 crore in corresponding quarter of last fiscal.
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