InvestorQ : What explains the sharp spurt in profits of SBI in the Mar-20 quarter?
Ria Jain made post

What explains the sharp spurt in profits of SBI in the Mar-20 quarter?

Answer
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Dia Deshpande answered.
3 months ago


SBI’s net profits were up by 327% at Rs.3581 crore for the Mar-20 quarter. However, a contribution of Rs.2731 crore to the net profit came from the sale of 4% stake in SBI Cards, which came out with its IPO earlier this year. Net interest income for the quarter was marginally lower by 80 bps at Rs.22,767 crore. Even the net interest margin (NIM) was lower at 2.94% compared to 3.02% last year. Gross NPAs were slightly better at 6.15% compared to 6.994% in the corresponding quarter last year. The March quarter also saw a 45% increase in the provisions for bad debts.