During the quarter, the asset quality of the bank has shown improvement and net interest income has seen an increase. However, the decline in total income has reduced profits.
SBI’s first quarter profit declined
State Bank of India has released its quarterly results today. The bank has made a profit of Rs 6068 crore during the quarter. Which is 6.7 percent less than last year’s profit of Rs 6504 crore. However, during the quarter, the asset quality of the bank has shown improvement and net interest income has seen an increase. SB I The decline in the profits of the company has been registered due to the fall in the total income. The profit of the bank on consolidated basis has come down to Rs 7325 crore from Rs 7380 crore last year.
How were the other figures of the bank
According to the released data, the total standalone income during the quarter declined to Rs 74,998.57 crore from Rs 77,347.17 crore last year. However, the net interest income has increased from Rs 27,638 crore to Rs 31,196 crore as compared to the previous year i.e. an increase of 12.87 percent. Net interest income is the difference between the interest paid by the bank on deposits and the interest earned on loans. During the first quarter, the operating profit of the bank declined from Rs 18975 crore to Rs 12753 crore last year. The main reason for the loss is the mark to market loss on the investment. Due to MTM loss, there has been a decline in the return on asset and return on equity of the bank.
How was the asset quality of the bank
The asset quality of the bank has shown improvement during the quarter. The gross NPA ratio of the bank has improved to 3.91 percent from 5.32 percent at the end of June quarter. At the same time, Net NPA has improved to 1.02 percent from 1.7 percent a year ago. The provision coverage ratio has improved by 719 basis points to 75 per cent over the previous year.