SBI jumps about 11% in two days

State Bank of India (SBI) rose 2.74% to Rs 192.95, extending gains for the second day after decent Q4 numbers.

SBI announced that Q4 result during market hours on Friday, 5 June 2020. The stock jumped 7.9% on that day. It has risen 10.9% in two trading sessions.

The bank reported a steep surge in net profit to Rs 3,580.81 crore in Q4 March 2020 compared with Rs 838.4 in Q4 March 2019. SBI earned a profit of Rs 2731.34 crore on sales of certain portion of investment in its subsidiary SBI Cards & Payment Services in Q4 FY20 and the same has been recorded as exceptional income. The bank incurred tax expense of Rs 1,389.23 crore in the Q4 FY20. It had written back taxes to the tune of Rs 407.20 crore in Q4 FY19.

 

Total income inched up 0.4% to Rs 76027.51 crore in Q4 March 2020 over Q4 March 2019. Profit before tax stood at Rs 4,970.04 crore during the quarter, significantly higher than Rs 431.20 crore in the corresponding period last year.

Net Interest Income (NII) shrunk 0.81% to Rs 22,767 crore in Q4 FY20 from Rs 22,954 crore in Q4 FY19. Net Interest Margin (NIM) was at 2.94% as on 31 March 2020 as against 3.02% as on 31 March 2019.

On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 1,49,091.85 crore as on 31 March 2020 as against Rs 1,59,661.19 crore as on 31 December 2019 and Rs 1,72,750.36 crore as on 31 March 2019. The ratio of gross NPAs to gross advances stood at 6.15% as on 31 March 2020 as against 6.94% as on 31 December 2019 and 7.53% as on 31 March 2019. The ratio of net NPAs to net advances stood at 2.23% as on 31 March 2020 as against 2.65% as on 31 December 2019 and 3.01% as on 31 March 2019.

The bank's provisions and contingencies fell 7.1% to Rs 15,733.78 crore in Q4 March 2020 over Q4 March 2019. Of this, provisions for NPAs fell 31.4% to Rs 11,893.73 crore in Q4 FY20 over Q4 FY19. Provision Coverage Ratio as on 31 March 2020 stood at 83.62%, up from 788.73% as on 31 March 2019.

Net profit soared to Rs 14,488.11 crore in the year ended March 2020 (FY20) from Rs 862.23 crore in the year ended March 2019 (FY19). Total income rose 6.6% to Rs 2,96,329.43 crore in FY20 over FY19.

SBI said moratorium was availed by 21.8% customers, which is 23% of term loans. Slippages ratio was at 1.41% in Q4 FY20 from 1.39% in Q4 FY19. "Exposure to severely stressed sectors by Covid-19 is less than 4% of the book," the bank said.

As on 31 March 2020, the Government of India holds 57.63% stake in the bank.

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