MUMBAI: India’s largest lender State Bank of India (SBI) 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.
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 after its regulatory filing.
Domestic net interest margin, a key indicator of bank’s profitability, declined to 3.23% compared to 3.40% sequentially.
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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%. (Reuters)
