Top Indian lender SBI posts profit fall in 1Q


In the quarter to June 30, the bank recorded mark-to-market (MTM) losses of 65.49bil rupees (RM3.68bil). That slashed SBI’s other income to 23.12bil rupees (RM1.3bil) from 118.02bil (RM6.6bil) a year earlier.

MUMBAI: State Bank of India (SBI) on Saturday missed estimates with a 6.7% fall in first-quarter net profit hit by investment losses, which India’s largest lender said it expected to recoup over the course of the year.

In the quarter to June 30, the bank recorded mark-to-market (MTM) losses of 65.49bil rupees (RM3.68bil).

That slashed SBI’s other income to 23.12bil rupees (RM1.3bil) from 118.02bil (RM6.6bil) a year earlier.

“We will recover most of the mark-to-market losses during this year,” SBI chairman Dinesh Khara told an earnings news conference.

“If we go by the government securities yield of 7.30%, which was yesterday’s closing, we can write back 19 billion rupees (RM1.07bil) of MTM provision.”

Net profit fell to 60.68 billion rupees (RM3.4bil), well below the 78.19 billion (RM4.4bil) expected by analysts, Refinitiv Eikon data showed.

Gross bad loans as a percentage of total assets improved, falling to 3.91% from 3.97% in the previous quarter.

The bank doesn’t foresee any challenges on asset quality going ahead, Khara said.

SBI expanded its domestic loans by 14.93% year on year, led by strong growth in retail loans and it expects advances to grow at a similar pace during through the year.

Most Indian banks have seen a healthy rise in advances as economic activity rebounds after widespread Covid-19 restrictions.

Deposits grew 8.73%, registering a marginal decline from the March quarter. — Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

State Bank of India , SBI , loss ,

   

Next In Business News

UEM Edgenta to strengthen presence in Saudi Arabia with 60% investment in MEEM
Duopharma, govt execute agreement for insulin worth RM375.17mil via direct negotiation
Malaysia's inaugural RM4.5bil sustainability MGII oversubscribed by 2.38 times
Mudajaya secures RM56.93mil job for Senari Port project
DPI explores stake purchase in Australian aerosols manufacturer
Bursa ends flat with key index down on last trading day of 3Q
BNM updates FCA list to include three new schemes
Public Mutual declares distributions of RM103mil for five funds
Headline inflation rises to 4.7% in August 2022 - BNM
Gamuda Land aims to launch five new projects annually from 2023

Others Also Read