MUMBAI: SBI, the country’s largest bank, posted its highest-ever quarterly profit at Rs 9,114 crore, a 41% YoY growth, in Q4 on the back of higher net interest income, which grew 15.3% year-on-year to Rs 31,198 crore. However, both numbers missed Street estimates, dragging down the stock by almost 5% to Rs 440.5 at closing.
Domestic net interest margin (NIM), a key profitability measure, grew 29 bps on-year but was flat sequentially. Operating profit grew just 0.08% year-on-year but rose 6.45% sequentially to Rs 19717 crore.
The figure that stood out was the 11% loan growth to Rs 28.19 lakh crore in Q4 from the year-ago quarter, driven by retail, personal loans (15.11% YoY) and foreign office advances (15.42% YoY). Home loans, nearly 23% of the bank’s domestic advances grew by 11.54%.“We should continue to see the loan growth we have in the past both in corporate and retail,” said Dinesh Khara, chairman, SBI.
Deposits grew 10% to Rs 40.51 lakh crore with low cost or CASA deposits up 7.78% at Rs 17.75 lakh crore. Loan loss provisions at Rs 3,262 crore were down 67% YoY but up 5% sequentially. Asset quality improved with the gross non-performing asset ratio declining 101 basis points (1.01 percentage) YoY and 53 bps sequentially to 3.97%. The net non- performing asset ratio declined 24% yoy and 19% sequentially to 1.02%.
On the growth in NIM amid a turning interest rate cycle, Khara said the bank would be impacted positively as nearly 75% of its loan book was linked to the MCLR and external benchmarks like the repo rate. “The lending rate would rise first as they are linked to MCLR and EBLR and the deposit rate would move up with a lag, benefiting in terms of NIMs.”
Emami net profit up 303% at R354 cr
NewDelhi: FMCG major, Emami on Friday, reported a 302% growth in consolidated net profit at Rs 354 cr for Q4FY22, compared to Rs 88 cr in the same quarter a year-ago. The company’s revenue from operations rose by 5.4% YoY during the quarter to Rs 770.40 cr. EBIDTA remained flat at Rs 163.95 cr in Q4FY22, as against Rs 162.80 cr in Q4FY21. Firm’s Vice-Chairman and MD Harsha Agarwal said it is now increasingly looking at D2C and eB2B segments and its investments in new-age startups are a step toward being present in the FMCG sector.
Tech Mahindra Q4 net profit up 39%
Bengaluru: IT company Tech Mahindra on Friday posted a 39% increase in its consolidated net profit at Rs 1,506 crore for the quarter ended March 31, 2022. It reported Rs 1,081 crore in the same quarter last year. The company’s profit beat the Street estimates. Its revenue from operations in the fourth quarter stood at Rs 12,116 crore, a 24% increase compared to Rs 9,730 crore in the year-ago period. For the full year, its revenue stood at Rs 44,646 crore, up 18% y-o-y and EBITDA at Rs 8,020 crore, up 17% y-o-y.
BoB posts R1,779 cr profit in Q4
Mumbai: Bank of Baroda on Friday reported a standalone profit after tax of Rs 1,779 crore inQ4FY22, helped by higher interest income and fall in bad loans. The lender had a loss of Rs 1,047 crore in the year-ago period. In the last financial year, the bank posted a standalone net profit of Rs 7,272 crore compared to Rs 829 crore in 2020-21. “The year went as per the guidance we gave at the beginning of the year. Our thought was that we should grow as per market and also protect our margins because liquidity was abundant,” the bank statement said.