Top Indian lender SBI posts lower Q1 profit on investment book losses

The new logo of State Bank of India (SBI) is pictured at the podium of the venue of a news conference after the announcement of SBI’s fourth quarter results, in Kolkata, India May 19, 2017. REUTERS/Rupak De Chowdhuri

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MUMBAI, Aug 6 (Reuters) – India’s largest lender State Bank of India ( SBI.NS ) said on Saturday its first quarter net profit fell to 60.68 billion rupees ($764.62 million), from 65.04 billion rupees a year earlier, as other income declined. significantly.

Analysts had expected SBI to report a net profit of 78.19 billion rupees, according to Refinitiv data.

Other income for the bank in the June quarter was 23.12 billion rupees, compared to 118.02 billion rupees.

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Operating profit was hit by mark-to-market losses on the bank’s investment book which also had an impact on its return on assets and return on equity, key financial metrics, SBI said in a news release after its regulatory filing.

Domestic net interest margin, a key indicator of bank’s profitability, declined to 3.23% compared to 3.40% sequentially.

Gross bad loans as a percentage of total assets for the first quarter of this financial year were at 3.91% compared to 3.97% in the previous quarter.

SBI said its domestic loans grew by 14.93% year-on-year, led by strong growth in retail loans.

Most Indian banks have seen a healthy pick up in advances as economic activity picks back up after widespread COVID-19 restrictions.

Meanwhile, deposits grew at a slower pace of 8.73%.

($1 = 79.3600 Indian rupees)

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Reporting by Nupur Anand; Editing by Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

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