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SBI Q1FY22 Result Analysis

SBI Q1FY22 Result Analysis

Published on 10 August 2021 Views 40 Comments 0

State Bank of India, the largest public sector bank in India has announced its Quarterly Results for Q1FY22 on 3rd August 2021. In this blog, we will briefly discuss the result of SBI for the Q1FY22 Result.

Introduction:

State Bank of India (SBI), has reported healthy growth in the Net Profit of 54.5% to Rs. 7,380 Cr. in the quarter ended 30th June 2021. Here is a brief detailed analysis of the Quarterly Result of Q1FY22 of SBI.

Q1FY22 Result:

  • Interest earned by Bank is Rs. 68,890 Cr. in the quarter ended 30th June 2021 against Rs. 69,940 Cr. in the quarter ended 30th June down by 1.40% YoY. Reduction in Interest Rates has led to a fall in the interest income of the bank.
  • Non-Interest Income of SBI has grown by 25.22% YoY from Rs. 19,412 Cr. in Q1FY21 to Rs. 24,307 Cr. in Q1FY22.
  • Summing up the above items, the Total Income of the bank rises to Rs. 93,267 Cr. in Q1FY22 up by 4.38% YoY from Rs. 89,352 Cr. in the Q1FY21.
  • The Interest Expenditure of the bank has also gone down to 38,249 Cr. in the first quarter of FY22 down by 5.09% YoY from Rs. 40,301 Cr. in the same quarter previous year.
  • Fall in Interest Expenditure is more than Fall in Interest Earned is a positive sign for the bank.
  • The Operating Expenses of the SBI have increased by 16.78% YoY from Rs. 29,275 Cr. in Q1FY21 to Rs. 34,188 Cr. in Q1FY22. The normalcy in banking activities has led to the rise of operating expenses of the bank.
  • The rise in Operating Expenses of SBI has been majorly contributed by the increase in Employee Cost and Other Operating Expenses by around 6% and 25% YoY respectively.
  • Further, the Operating Profit of the Bank is at Rs. 20,830 Cr. in Q1FY22 up by 5.34% YoY against Rs. 19,775 in Q1FY21.
  • The Provision from the Operating Profit has gone down on yearly basis by around 16.34% from Rs. 12,563 Cr. in Q1FY21 to Rs. 10,510 Cr. in Q1FY22.
  • The Net Profit of the bank grew by 54.5% YoY from Rs. 4,777 Cr. in Q1FY21 to Rs. 7,380 Cr. in Q1FY22.
  • Return on Asset (ROA) has moved up to 0.61% in Q1FY22 against 0.45% in Q1FY21.
  • The Return on Equity (ROE) has also increased from 9.01% in Q1FY21 to 12.67% in Q1FY22 due to an increase in Net Profit.
  • The expense ratio of the bank is at around 51.91% as of June 2021.
  • The Net Interest Margin of the bank is at 5.27% in the quarter ended 30th June 2021 against 5.36% in the quarter ended 30th June 2020.
  • The Gross NPA has also decreased from 5.36% in Q1FY21 to 5.27% in Q1FY22.
  • Likely, Net NPA has also decreased on yearly basis from 1.83% in Q1FY21 to 1.75% in Q1FY22.
  • State Bank of India is having a great value unlocking opportunity due to the presence of many unlisted profit-making subsidiaries like SBI Funds Management, SBI General Insurance, SBI Capital Markets Group, and SBI SG Global Securities which may list soon.

Conclusions:

State Bank of India (SBI) has presented some interesting results this quarter. The Clear Picture of NPAs will be clear in the coming quarter, as of now Provisions are lower on yearly basis. Do proper research before making an investment decision or strategy or consult a financial advisor.

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