The State Bank of India on Monday announced a net profit of Rs. 945 crores during the September quarter of FY19, a decline of more than 40 percent year on year; interest falling by 26% to 7,814.5 rupees.
The largest Indian lender experienced a 15.2% decline in operating income in the second quarter of year 19 to reach 12,344 crore. SBI net interest income – the difference between interest earned and interest expended – increased by 12.5% year-over-year to 20,906 crores and the internal net interest margin dropped by seven basis points sequentially, at 2.88%. The lender's capital ratio decreased 22 basis points sequentially to 12.61% in the second quarter.
The quality of SBI's assets improved in September, with gross EPSs as a percentage of gross advances decreasing 75 basis points sequentially to 9.95%. The net PPP ratio also decreased by 45 basis points qoq to 4.84%.
SBI Chairman Rajnish Kumar said Monday that of the 3,189 crore slippage companies, 75% came from the watch list. "The watch list is now at 20,359 crore rupees, down 22,289 crores at the end of June," he said. SBI shares rose 5.06% on BSE in intra-day trading on Monday, before ending at Rs. 295.30, up 3.45%.
SBI has an exposure of Rs 31,066 crore to the accounts of the first RBI list which remains unresolved after being returned to the NCLT and the total provision on these accounts was NZ $ 19,882.
With regard to the accounts mentioned in the second list, it now displays an exposure of 22,309 crores of rupees, while the provisions against it amount to 17,401 crores of rupees.
In the second quarter of fiscal year 19, out of a total of Rs. 10,725 crores in the bad debts category, Rs. 7,536 crores came from the retailers' and small and medium-sized enterprises (SMEs) portfolio. "On the side of SMEs, the number is slightly higher. One of the reasons is that the RBI has waived the consideration of SME accounts as NPAs after a period of 180 days instead of 90 days. During the last quarter, we had cash in the amount of Rs. 1200 crore for SMEs. So, if you take some of that and move it to the previous quarter, it's not a big increase. "SBI's APMs in the SMB segment amounted to 27,124 crores of rupees at the end in September, against 25,059 crores of rupees at the end of June.
Recoveries and upgrades in the second quarter of year 19 amounted to 4,327 crore. SBI recorded a growth of 11.11% Rs in domestic borrowing to 17.78 million rupees in the first year of September and its deposits increased by 7.02% to 28.07 rupees in the same year period.
While the bank's business and SME loans grew by 14.3% and 5.24% year-on-year respectively, its personal loans to individuals increased 14.23% year-on-year to 5.76 million rupees. "The wait or the advice we gave is 10 to 12%. We are on the right track to achieve this goal, "added Kumar.
The ratio of SBI's current account savings accounts (CASA) improved by 39 basis points year-over-year to 45.27% as at 30 September. In absolute terms, CASA domestic deposits increased 8.19 percent year-on-year to 12.27 rupees.