21
Monday
September 2020
12:23 PM IST
News Headlines
Hope the youngsters translate their talent into performance: Warner        Slovenia celebrates likely 1-2 Tour de France victory        Kohli begins hunt for elusive IPL title as RCB face Sunrisers        TCS sets up 11 COVID-19 isolation centres for staff, their dependents        Over Rs 70K crore worth of loans sanctioned to discoms under liquidity package: Govt        Virginia Commonwealth to remove Confederate names, symbols        Hefty fines for COVID-19 quarantine breaches in England        Trump to nominate female judge for Supreme Court        Sachin Pilot to campaign for Congress in MP Assembly bypolls        Farmers protest against farm bills in Haryana        Overall COVID-19 deaths per million population in India low compared to other countries: Govt        Will not sign death warrant of farmers: Cong in RS on farm bills        Burkina Faso striker Traore leaves Lyon for Aston Villa        AIFF to conduct three-day International Virtual Conference for coaches        Looking to play good brand of cricket to make this season a memorable one: KL Rahul        US stocks fall as market decline extends for third week        No decision to discontinue printing of Rs 2000 note: FinMin        Iran vows 'hit' on all involved in US killing of top general        Russia's Navalny says he's now more than 'technically alive'        Pak uses drone to weapons in J-K's Rajouri; 3 LeT terrorists arrested        
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Business News
SBI SBI Q1 profit surges 81 pc to Rs 4,189 cr
 
Mumbai: The country''s largest lender State Bank of India reported 81 per cent jump in its profit after tax to Rs 4,189 crore for the first quarter ended June 30, as against Rs 2,312 crore in the year-ago period. The rise in profit was on account of one-off gains of Rs 1,539.73 crore on sale of certain portion of investment in the lender''s life insurance subsidiary - SBI Life. With this, the bank now holds 55.50 per cent in its life insurance arm, down from 57.60 per cent earlier. "In the third successive quarter, SBI has delivered a strong performance. The net profit as compared to the corresponding period of last year has gone up by 81 per cent. "It is safe to presume that we are asymptomatic and that is not a guarantee of what will happen in the future like any other individual," its chairman Rajnish Kumar told reporters on Friday.

The profit was also helped by a healthy 16.14 per cent growth in its net interest income at Rs 26,642 crore during the quarter. Domestic net interest margin (NIM) improved to 3.24 per cent, registering an increase of 23 bps year-on-year. Gross non-performing assets (NPAs) stood at 5.44 per cent as against 7.53 per cent. Net NPAs were at 1.86 per cent compared to 3.07 per cent. Provision coverage ratio (PCR) improved to 86.32 per cent, up 698 basis points year-on-year. Its loan loss provision was down 19.13 per cent at Rs 9,420 crore, compared to Rs 11,648 crore. During the quarter, the bank made an additional provision of Rs 1,836 crore on account of COVID-19 related accounts. As of June 30, the bank holds Rs 3,008 crore on COVID-19 related accounts, more than the regulatory requirement.

"We have decided to enhance the provision or accelerate the provision over the minimum regulatory," Kumar said. He said for one account, which was declared fraud and for which a dispensation for four quarters is available, the entire amount was provided for during the quarter. The lender also made an adhoc provision of Rs 1,614 crore towards the recently concluded wage revisions in the June quarter. Fresh slippages in the June quarter was Rs 16,212 crore. Kumar said he expects fresh slippages to be at Rs 63,000 crore in this fiscal, under a stressed scenario. "In March we have estimated that our fresh slippages in this year (FY21) will not go beyond Rs 63,000 crore. That is the stress test. We believe that we will end up with a lower number. That is the limit that we have set for this year, which is a number in a stressed scenario," he noted. In a baseline or normal scenario, he expects fresh slippages to be around Rs 32,000-33,000 crore in this year.

Kumar said of the term-loan book size of Rs 16 lakh crore, close to 9.5 per cent is under moratorium. He also reiterated that beyond August 31, a blanket moratorium is not required. The bank''s recoveries and upgradation were at Rs 5,769 crore. It expects Rs 10,000-11,000 crore of recoveries over the next two quarters in the large corporate accounts apart from normal recoveries. Kumar said the bank is seeing a good pipeline for sanctions. "The demand for credit from the corporates would come, I am not saying it is not coming. Even our project pipeline is more than Rs 1 lakh crore," he said. Total deposits grew at 15.96 per cent year-on-year. Credit growth stood at 6.58 per cent y-o-y, mainly driven by retail (personal) advances (12.85 per cent) and foreign office advances (11.19 per cent).

Kumar said the lender has moderated its FY21 loan growth target to 8 per cent as against 10 per cent it had earlier estimated. Capital adequacy ratio (CAR) has improved by 51 bps to 13.40 per cent as on June 2020. The bank''s scrip ended at Rs 191.45, up 2.63 per cent on the BSE on Friday.


TCS sets up 11 COVID-19 isolation centres for staff, their dependents
Over Rs 70K crore worth of loans sanctioned to discoms under liquidity package: Govt
US stocks fall as market decline extends for third week
No decision to discontinue printing of Rs 2000 note: FinMin
More Indians in Singapore returning home due to job losses: Envoy
Rupee drops 13 paise to 73.73 against US dollar in early trade
Trai grants Voda Idea time till Sep 8 to respond to priority plan show-cause notice
PVR defers capex plans to control costs amid COVID-19 disruptions
India's commitment to reform being taken seriously by foreign investors: FM
Air India to resume Mumbai-Aurangabad flights from Sep 15
Paytm FY'20 revenue rises to Rs 3,629 cr, loss narrows by 40 pc
Sensex tanks over 600 pts on global selloff; Nifty below 11,400
Tata Motors shares gain 1 pc after August sales data
India ready to work with FAO to help other nations in tackling locust problem: Agri ministry
GST collection drops for second month in Aug to Rs 86,449 cr
TCS shares decline over 1 pc
Gujarat tops Niti Aayog's Export Preparedness Index 2020
RBI sees demand recovery taking more time, dependent on govt consumption
Singapore govt, monetary authority trim stake in Zee Entertainment
Average salary increment falls to 3.6 pc this fiscal, says survey
KERALA NEWS
Take steps to attach properties of pvt financial institution; HC to govt
 Kochi: The Kerala High Court on Wednesday directed the state government to take steps to attach the  
Kerala logs single-day highest spike of 3,830 COVID-19 cases
Jaleel has committed no wrong, says Kerala CM
"My hands are clean, not accepted any gift or money" Minister
INTERNATIONAL NEWS
Virginia Commonwealth to remove Confederate names, symbols
 Richmond (US), Sep 20 (AP) A university in the former capital of the Confederacy will remove buildin
Hefty fines for COVID-19 quarantine breaches in England
Trump to nominate female judge for Supreme Court
Iran vows 'hit' on all involved in US killing of top general
NATIONAL NEWS
Sachin Pilot to campaign for Congress in MP Assembly bypolls
 Bhopal, Sep 20 (PTI) The Madhya Pradesh Congress has roped in its Rajasthan leader Sachin Pilot to c
Farmers protest against farm bills in Haryana
Overall COVID-19 deaths per million population in India low compared to other countries: Govt
Pak uses drone to weapons in J-K's Rajouri; 3 LeT terrorists arrested
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