SBI is a bright star

SBI is a bright star today since the opening bell post its Q4FY21 performance; the stock price rose 4.5% to hit an intraday high at Rs.418.90, not too far from its 52-week high of Rs.426.45.

A 19% (YoY) increase in NII at Rs.27,067 crore, a 22% rise in other income at Rs.16,225 crore and a 17% drop in total provisioning  at Rs.9914 crore led to the bank posting a fantastic 81% jump in net profit at Rs.6451 crore.

Asset quality also improved with Gross NPA falling from 5.44% to 4.98% (QoQ) and Net NPA getting better by 31 bps to 1.5%.

At end of FY21, SBI restructured loans worth Rs.5316 crore under RBI’s Covid one-time scheme against which, it holds provisions worth Rs.1121 crore. Of these restructured loans, 52% comprised of retail loans and balance is corporate.

The Bank is hopeful that the second wave will not impact the asset quality as its loan collection efficiency remains robust at 96% and expects asset quality pressure to come down in current fiscal.