State Bank of India (SBI) on Friday swung to profit from a record loss in the corresponding quarter year ago on the back of an improvement in its asset quality.
In a regulatory filing, the country's largest lender reported a net profit of Rs 838.40 crore for the quarter ended March 31, as against a loss of Rs 7,718.17 crore for the corresponding quarter a year ago.
SBI shares fell more than 2 per cent after the earnings announcement, but pared some of those losses.
Here are 10 things to know:SBI's net interest income - the difference between interest earned on loans and interest paid on deposits - rose 14.91 per cent to Rs 22,953.83 crore compared with Rs 19,974.28 crore in the year-ago period.However, the bank's net profit fell short of Street estimates.Analysts had on an average expectedthe Mumbai-based bank to report a net profit of Rs 4,393 crore for the quarter, news agency Reuters reported citing Refinitiv data.The profit miss came on account of higher provisioning for bad loans, which rose 24 per cent to Rs 17,335.84 crore sequentially, according to SBI's regulatory filing.SBI said itsprovision coverage ratio (PCR) stood at 78.73as of March 31, 2019.As per Reserve Bank of India norms, the bank provided Rs 34,554 crore for stressed accounts under the Insolvency and Bankruptcy Code (lBC).SBI's gross non-performing assets (NPAs) as a percentage of total advances declined to 7.53 per cent at the end of March quarter, from 8.71 per cent at the end of the previous quarter.Its total non-performing assets stood at Rs 1,72,750 crore at the end of March quarter compared with Rs 1,87,764 crore at the end of December quarter.SBI shares fell as much as 2.29 per cent on the National Stock Exchange in intraday trade.At 1:54 pm, the SBI stock traded 0.58 per cent lower at Rs 297.55 apiece on the bourse, underperforming the benchmark Nifty index which was flat.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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