India’s top lender SBI posts lower first-quarter profit on investment book losses

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

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MUMBAI, Aug 6 (Reuters) – India’s biggest lender, the State Bank of India (SBI.NS), said on Saturday its first-quarter net profit fell to 60.68 billion rupees ($764.62 million). dollars), against 65.04 billion rupees per year, while other income decreased. significantly.

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

The bank’s other income in the June quarter was Rs 23.12 billion compared to Rs 118.02 billion.

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Operating profit was hit by market valuation losses on the bank’s investment portfolio, which also impacted its return on assets and return on equity, key financial measures, a SBI said in a statement after its regulatory filing.

The domestic net interest margin, a key indicator of the bank’s profitability, declined to 3.23% from 3.40% sequentially.

Gross bad debt as a percentage of total assets for the first quarter of this fiscal year was 3.91% compared to 3.97% in the prior quarter.

The SBI said its domestic lending grew 14.93% year-on-year, driven by strong growth in retail lending.

Most Indian banks have seen a healthy recovery in advances as economic activity picks 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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