The State Bank of India, the country’s largest public-sector lender, logged a record profit of Rs 6,504 crore in Q1 of the current financial year. This is an over 55% y-o-y rise in its standalone profit after tax. SBI had posted a profit of Rs 4,189 crore in the same quarter in the year-ago period. Lower provisions and a spike in other income contributed to the bank reporting a stellar bottom line in Q1 FY2022. The overall number is well beyond what the street had estimated the bank would report.

The bank also beat street estimates on net interest income, reporting a 3.7% increase y-o-y to Rs 27,638 crore in the first quarter of the year in review.

The bank’s other income rose 48% to Rs 11,803 crore led by recovery of nearly Rs 1,692 crore from Kingfisher Airlines. 

The overall asset quality, however, weakened for the bank with gross non-performing asset ratio at 5.32% compared to 4.98% reported in the previous quarter (Q4 FY2021). Net NPA ratio rose 27 basis points sequentially to 1.77%.

While gross advances for the bank rose 5.79% y-o-y to Rs 25.24 lakh crore, total deposits rose 8.8% to Rs 37.2 lakh crore.

In the loan segment, the lender’s domestic retail loans grew 16.5% y-o-y to Rs 8.72 lakh crore while the home loan segment contributed over Rs 5 lakh crore to the bank’s loan book. 

SBI’s market capitalization surpassed the Rs 4 trillion mark ahead of its June quarter results

and the stock price of SBI soared to an all-time high of Rs 456.15 after a 2.16% spike in intra-day trade upon the results announcement. (03:30 PM August 4, 2021).


  • Net profit increased 55.25% y-o-y to Rs 6,504 crore in Q1 FY2022.
  • The operating margin increased by 5.06% to Rs 18,975 crore y-o-y.
  • Net Interest Income (NII) increased by 3.74% y-o-y & 2.11% q-o-q to Rs 27,638 crore.
  • Non-interest income grew 48% y-o-y to Rs 11,803 crore in Q1 FY22.
  • Capital Adequacy Ratio (CAR) saw an improvement of 26 base points y-o-y to 13.66%.
  • CASA deposits increased 10.71% y-o-y to Rs 16,59,234 crore, with CASA ratio at 45.97% of total deposits.
  • The home loan segment saw a growth of 23% over the last financial year.
  • Earnings Per Share (EPS) increased to Rs 29.23 from Rs 18.83 y-o-y.


  • Operating profit q-o-q fell by 3.68% from Rs 19,700 crore in the previous quarter to Rs 18,975 in the June 2021 quarter.
  • Net Interest Margin (NIM) dipped by 9 base points to 3.15% y-o-y.
  • Non-Performing Asset (NPA) ratio climbed to 5.3% against 4.9% recorded in the March quarter. The NPA ratio increased by 27 base points over the quarter.
  • Slippages worth Rs 15,666 crore were reported in Q1 FY2022 compared to Rs 3,637 crore recorded in Q1 FY21. Small and medium enterprises contributed Rs 6,416 crore in slippages.
  • SBI’s total liabilities grew by over 10% to Rs 1,75,834 crore in the June quarter compared to Rs 1,43,917 crore in the year-ago period.

Segment-Wise Revenue

  • Treasury Operations: Rs 26,091 crore in Q1 FY2022 against Rs 22,683 crore in Q4 FY2021.
  • Wholesale Banking Operations: Rs 19,279 crore in Q1 FY2022 against Rs 23,767 crore in Q4 FY2021.
  • Retail Banking Operations: Rs 31,886 crore in Q1 FY2022 against Rs 33,840 crore in Q4 FY2021
  • Unallocated revenue: Rs 109 crore in Q1 FY2022 against Rs 1,036 crore in Q4 FY2021

SBI Statement

The banks attributed its degradation in asset quality to the spread of the COVID-19 pandemic that led to a decline in economic activities and movement in financial markets, and therefore the collections for the bank. SBI says that the Bank is gearing up on several fronts to mitigate all the challenges. Major challenges for the Bank could be extended working capital cycles, fluctuating cash flow trends, and the probable inability of the borrowers to meet their obligations against the loans in a timely manner.

“Around 50% of our home loan book is to non-salaried customers which belong to the SME segment,” said Dinesh Khara, chairman of SBI, adding, “The slippages are largely because of the disruption in the SME segment.” He also said, “SBI is expecting a credit growth of 9% during this financial year. The under-utilisation of credit lines by borrowers in our corporate clients group has dropped to 25%,” Khara said. “That’s a positive.”

What Does This Mean For The Investor?

The lender beat market estimates following which the stock skyrocketed at Dalal Street. The bank has reported the highest net profit in a quarter, uplifting the market sentiment. Analysts, according to media reports, expect the bank to have healthy performance post the second-wave speed breakers. India’s largest bank is also expected to be better placed in terms of market capitalization, provisions, and asset quality, and buoyed by recoveries from United Breweries. However, analysts also suspect a weakened business momentum due to an industry-wide slowdown amid the pandemic.