SBI net profit jumps to Rs.3,581 crore in Q4

State Bank of India (SBI), the country's largest lender by assets, reported a more than four-fold jump in profit for the fourth quarter on Friday, driven by a one-time gain from a stake sale in its credit card unit. Net profit for the three months ended March 31 jumped to Rs.3,581 crore from Rs.838 crore a year earlier, SBI said in a regulatory filing.

SBI's net profit was lifted by a one-time gain of Rs.2,731 crore on sale of certain portion investment in bank's credit card subsidiary SBI Cards in Q4.

Gross bad loans as a percentage of total loans, a measure of asset quality, eased to 6.15% from 6.94% in the previous quarter, while provisions for bad loans fell 31.4% to Rs.11,894 crore.

Highlights of SBI results:

SBI registered a net profit of Rs.3,581 crore in Q4FY20, an increase of 327% over Q4FY19.

For the full year FY20, net profit stood at Rs. 14,488 crore against net profit of ₹862 crore in FY19. This is also the highest ever yearly net profit recorded by the Bank.

Operating Profit increased to Rs. 68,133 Crores in FY20 from Rs. 55,436 Crores in FY19, an increase of 22.90% YoY.

Net Interest Income of the Bank grew by 11.02% YoY during FY20.

Domestic Net Interest Margin (NIM) improved to 3.19% in FY20, registering an increase of 24 bps YoY.

Non-Interest Income for FY20 at Rs. 45,221 Cr is up by 22.97% YoY.

Total Deposits grew at 11.34% YoY, out of which Current Account Deposit grew by 7.56% YoY, while Saving Bank Deposits grew by 9.99% YoY.

Credit Growth stood at 5.64% YoY, mainly driven by Retail (Personal) Advances (15.40% YoY) and Foreign Office Advances (18.05% YoY).

Home loan, which constitutes 22% of Bank’s domestic advances, has grown by 13.86% YoY.

Net NPA ratio at 2.23% is down 78 bps YoY and 42 bps QoQ.

Gross NPA ratio at 6.15% is down 138 bps YoY and 79 bps QoQ.

Provision Coverage Ratio (PCR) has improved to 83.62%, up 489 bps YoY and 189 bps QoQ.

Slippages Ratio for FY20 has declined to 2.16% from 2.42% as at the end of 9MFY20.

Credit Cost as at the end of FY20 has declined 79 bps YoY to 1.87%.

Cost to Income Ratio has improved from 55.70% in FY19 to 52.46% in FY20, an improvement of 324 bps.