SBI’s 80% Jump In Profits In The March Quarter

SBI’s 80% jump in profits, know the major reason for this spectacular result of State Bank in the March quarter.

The country’s largest bank State Bank of India (SBI) on Friday reported a jump of 80 percent in single net profit in the fourth and last quarter of the financial year 2020-21.

Thus, the net profit of State Bank stood at Rs 6,450.75 crore during the January-March quarter. This increase in the profits of the bank is due to the reduction in stuck debt.

SBI has informed the stock markets that the bank had a net profit of Rs 3,580.81 crore in the January-March quarter of the financial year 2019-20.

Similarly, the bank’s total income increased to Rs 81,326.96 crore in the last quarter of the financial year 2020-21. The bank had total revenue of Rs 76,027.51 crore in the fourth quarter of FY 2019-20.

In the quarter under review, the bank’s interest income rose by 19 percent to Rs 27,067 crore. The figure stood at Rs 22,767 crore in the same quarter last year.

On a consolidated basis, the bank’s net profit rose 60 percent to Rs 7,270.25 crore in the fourth quarter of FY 2020-21. The bank had a net profit of Rs 4,557.49 crore on a consolidated basis in the fourth quarter of FY 2019-20.

SBI’s 80% jump in profits: Significant improvement in NPA is the major reason.

The improvement in asset quality was the major reason for the huge jump in the bank’s income. The bank’s gross non-performing assets (NPAs) declined to 4.98 per cent of total loans in the quarter under review.

It is noteworthy that the bank’s gross non-performing assets stood at 6.15 per cent of the total loans in the same quarter of FY 2019-20.

Similarly, net NPAs or bad loans also declined to 1.50 per cent in the quarter under review. It was 2.23 percent in the January-March quarter of last year.

Due to this, the provisioning of the bank for the stranded loan was reduced by 17 percent to Rs 9,914 crore. The bank had provisioned Rs 11,894 crore in the fourth quarter of FY 2019-20.

The bank’s net profit on a standalone basis rose by 41 percent to Rs 20,110.17 crore for the entire financial year 2020-21. At the same time, the bank had a single net profit of Rs 14,488.11 crore in the financial year 2019-20.

The board of the bank has recommended a dividend at the rate of four rupees per share for the financial year ended March 31, 2021. On the BSE, an SBI share price rose by 4.30 percent to Rs 401.10