SBI Q2 net profit jumps 55 % to Rs 5,246 cr as bad loans decline
Mumbai: The country's largest lender State Bank of India (SBI) on Wednesday reported a 55.41 percent rise in consolidated net profit at Rs 5,245.88 crore for the second quarter ended September 30 on account of a decline in bad loans.
The bank's net profit stood at Rs 3,375.40 crore in the July-September quarter of the previous fiscal.
On a standalone basis, the bank's net profit rose nearly 52 percent to Rs 4,574 crore driven by lower provisions and higher growth in net interest income. Its net profit stood at Rs 3,012 crore in the year-ago period.
"Our assessment indicates an upward movement in economic activities. Most companies are suggesting that the activity levels are touching 70-80 percent of the pre-COVID levels. Vehicles registration, including tractors, are increasing. There are signs that the economy is recovering," the bank's chairman Dinesh Khara told reporters.
Net interest income grew 14.56 percent to Rs 28,181 crore during the quarter as against Rs 24,600 crore last year.
Domestic net interest margin for the quarter stood at 3.34 percent as compared to 3.22 percent a year ago.
The lender has received one-time restructuring applications worth Rs 6,495 crore so far and has provided Rs 650 crore for it. Of this, Rs 2,400 crore is from the retail book and the rest from the corporate book.
"Of the Rs 2,400 crore, it is predominantly MSME (micro, small and medium enterprises). Retail per se is only 2,600 people have applied for the restructuring of personal loans and home loans only 4,291 people have applied for a recast," the bank's managing director (retail and digital banking) C S Setty said.
"Together personal and home loan constitute Rs 1,300 crore and the rest is coming from about 35,000 MSMEs," Setty added.
In the corporate segment, the lender has received restructuring requests from 42 customers who account for about Rs 4,000 crore of loans.
Khara expects additional restructuring of Rs 13,000 crore up to December 2020.
"It may not be so, but it is a very liberal estimate which we have taken," he said, adding that request for restructuring would largely come from corporates and a bit from MSMEs.
The bank's gross non-performing assets (NPAs) ratio stood at 5.28 percent as against 7.19 percent a year ago. Net NPAs improved to 1.59 percent compared to 2.79 percent.
Total provision declined 21.74 percent to Rs 11,886 crore during the quarter from Rs 15,187 crore in the corresponding quarter of the previous year.
The provision coverage ratio (PCR) improved to 88.19 percent, while fresh slippages stood at Rs 2,756 crore.
"When it comes to slippages in various sectors, I would like to mention that fresh slippages are more in the agriculture sector and also in the SME sector. In SME, we have been successful in pulling back to a greater extent. Corporate slippages have come down significantly," Khara said.
The bank has estimated Rs 20,000 crore of slippages during the second half of the current fiscal.
Its collection efficiency for domestic loan book (excluding agriculture segment) stood at 97 percent at the end of Q2 FY21.
Total deposits grew 14.41 percent year-on-year, out of which current account deposits grew 8.55 percent, while saving bank deposits grew by 16.28 percent.
Credit growth stood at 6.02 percent, mainly driven by retail (personal) advances (14.55 percent).
"Retail will continue to be our major lever for growth going forward as well," Khara said.
The lender expects credit growth in FY21 to be at 8-9 percent.
Capital Adequacy Ratio (CAR) improved by 113 basis points year-on-year to 14.72 percent at the end of September 2020.
Shares of SBI on Wednesday closed 1.12 percent higher at Rs 207.05 apiece on the BSE.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Eight women labourers killed as truck hits tempo on Nagpur-Mumbai expressway
Jalna/Mumbai (PTI): Eight women labourers were killed, and three others were injured after a speeding truck rammed into a tempo on the Nagpur-Mumbai Expressway in Jalna district of Maharashtra on Wednesday evening, police said.
The incident occurred when a group of women was returning home after completing cleaning work on the expressway.
"A total of 11 persons, including the driver, were sitting in the tempo. As the vehicle was about to start, a speeding truck headed towards Mumbai rammed into it from behind at Kadvanchi village," a police official said, adding that seven women died on the spot and another succumbed in the Jalna government hospital.
The tempo was badly mangled, and the bodies were reportedly strewn across the road.
The deceased have been identified as Alkabai Admane (45), Laxmibai Madan (35), Meena Admane (45), Kanchan Admane (50), Tarabai Choudhari (60), Kadubai Madan (55), and Suman Admane (70), all residents of Jalna tehsil.
The identity of the eighth deceased is yet to be confirmed.
Three people are undergoing treatment at the hospital.
Police have arrested the truck driver and registered a case under relevant sections of the Bharatiya Nyaya Sanhita (BNS). Further investigation is underway.
Expressing grief, Maharashtra Chief Minister Devendra Fadnavis said the death of eight people is extremely unfortunate, and announced a financial assistance of Rs 5 lakh each to the next of kin of the deceased.
Fadnavis paid heartfelt tributes to the deceased and expressed solidarity with their families.
He said in a statement the injured have been immediately admitted to hospitals and the local administration is coordinating relief efforts.
The district collector and the superintendent of police are present at the spot, overseeing the situation, the chief minister added.
Environment Minister and Jalna District Guardian Minister Pankaja Munde has expressed deep sorrow over the incident.
In a condolence message, Munde extended her sympathies to the families of the deceased.
