SBI shares gain nearly 3 pc as Q1 profit surges

The country's largest bank SBI on Friday posted an 81 per cent jump in its standalone net profit to Rs 4,189.34 crore for the first quarter, aided by decline in bad loan and sale of minority stake in its subsidiary SBI Life Insurance. The bank had reported a net profit of Rs 2,312.02 crore in the April-June quarter of 2019-20.

Shares of SBI on Friday gained nearly 3 per cent after the company posted an 81 per cent jump in its standalone net profit for the first quarter. The stock rose by 2.63 per cent to close at Rs 191.45 on the BSE. During the day, it jumped 4.47 per cent to Rs 194.90.

On the NSE, it gained 2.41 per cent to settle at Rs 191.05. The company's market valuation rose by Rs 4,373.69 crore to Rs 1,70,861.69 crore on the BSE. In volume terms, 62.51 lakh shares were traded on the BSE and 14.59 crore on the NSE. The country's largest bank SBI on Friday posted an 81 per cent jump in its standalone net profit to Rs 4,189.34 crore for the first quarter, aided by decline in bad loan and sale of minority stake in its subsidiary SBI Life Insurance.

The bank had reported a net profit of Rs 2,312.02 crore in the April-June quarter of 2019-20. The June quarter profit reflects Rs 1,539.73 crore earned out of sale of 2.1 per cent stake in SBI Life Insurance Company, the bank said while announcing its first quarter numbers.

Standalone total income increased to Rs 74,457.86 crore in the first quarter of 2020-21, from Rs 70,653.23 crore in the same period a year ago, SBI said in a regulatory filing. Its gross non-performing assets (NPA) declined to 5.44 per cent as of June-end, over 7.53 per cent at June-end last year.

Similarly, net NPAs also declined to 1.8 per cent in June 2020, compared to 3.07 per cent a year ago. As a result, the provision for bad loans declined to Rs 9,420.46 crore from Rs 11,648.45 crore in the year-ago period.