SBI posts strong Q2FY19 result, bags Rs 945 cr profit; Gross NPA under 10%

The largest lender in India, State Bank of India (SBI) has posted its result during the September 2018 quarter in which the bank has turned its losses into profit. SBI posted a net profit of Rs 944.87 crore in Q2FY19, which was against net losses of Rs 4,875.85 crore in Q1FY19. However, the Q2FY19 net profit was down by 40.26% as against profit of Rs 1,581.55 crore recorded in the corresponding period of previous year. The share price of SBI soared by over 5% after the announcement of result and finished at Rs 296.25 per piece up by Rs 10.80 or 3.78% on Sensex.   

Going ahead, net interest income (NII) came in at Rs 20,905.69 crore this quarter, which was up by 12.48% compared to Rs 18,585.90 crore a year ago same period. On other hand, NII in Q2FY19 was below 4.09% as against NII of Rs 21,798.36 crore recorded in Q1FY19. 

SBI made provisions of Rs 10,184.50 crore in Q2FY19 against non-performing assets (NPA), down by 39.07% versus Rs 16,715.20 crore in Q2FY18 and below 21.86% as against Rs 13,037.90 crore in Q1FY19. 

TRENDING NOW

BCL Industries’s subsidiary wins Rs 228 crore order for supply of Ethanol from state-run BPCL, HPCL, Indian Oil

Power of Compounding: When one-year interest becomes more than 31 years of investment

Animal OTT Release Confirmed: Ranbir Kapoor, Bobby Deol starrer OTT release details out

SBI, Power Grid, NTPC, Indraprastha Medical, Force Motors: Stocks to watch on Wednesday

DU doubles components of annual charges second time in a year following HEFA loans delhi univsersity

Cyclone Michaung: Chennai floods disrupt business operations; Infosys, HCL Tech, Foxconn, MRF affected

Coal industry index grows to 18.4% in October

Waaree Energies to supply 200 MW solar PV modules to IRCON Renewable Power

English Premier League sells domestic TV rights for record $8.45 billion for next cycle

Dividend stocks: From Coal India to Vedanta, here are 5 large-cap stocks with high dividend yields

SME cos listed on NSE Emerge platform hit Rs 1 lakh crore m-cap

Cyclone hits air services in Vizag, 23 flights cancelled

How to get iPhone 15 under Rs 40,000 in limited-period exchange deal?

SIP Calculator: Need money for daughter's education? This SIP investment formula can help you generate Rs 1 crore

Bike-taxi startup Rapido enters cab biz with intra-city mobility solution

Whereas, the gross NPA this quarter was at Rs 2,05,864.12 crore which was up by 10.61% from gross NPA of Rs 1,86,114.60 crore in Q2FY18. Interestingly, in a major good news, SBI brought its NPA down in Q2 by 3.27% if compared with Rs 2,12,839.92 crore posted in Q1FY19. 

In percentage terms, gross NPA was at 9.95% in Q2FY19 compared to 10.69% in Q1FY19 and 9.835 in Q2FY18. 
Provision coverage ratio was at 70.74% in Q2FY19.

In its financial audit, SBI informed that, as per RBI's circular dated June 23, 2017 and August 28, 2017, for the accounts covered under the provisions of insolvency & bankruptcy code (IBC), the bank is holding total provisions of Rs 36,656 crore which would be 68.68% of SBI's total outstanding as on September 2018. 

For the six months period of FY19, SBI has registered net loss of Rs 3,930.98 crore versus net profit of Rs 3,587.08 crore a year ago same period. While the NII came in at Rs 42,704.05 crore in H1FY19 increasing by 17.99% from Rs 36,191.91 crore in the same period of previous year.