SBI’s Q1 net profit falls 6.7% to ₹6,068cr on bond provisions

MUMBAI: State Bank of India reported a net profit of Rs 6,068 crore for the quarter ending June 2022, a decline of 6.7% over Rs 6,504 crore in the corresponding quarter last year, due to provisions of over Rs 6,500 crore on its government bond portfolio following a rise in interest rates. On a sequential basis, the bank’s net profit was 33% lower than the record net profit of Rs 9,114 crore for the quarter ending March 2022.
Its balance sheet crossed Rs 50 lakh crore, with loan book growing 14.9% to Rs 29 lakh crore. Deposits increased 8.7% to Rs 40.5 lakh crore, and home loans grew 13.8% to Rs 5.8 lakh crore. It expected the home loan book to grow to Rs 6 lakh crore by end of the calendar year. Profits would have been much higher had it not been for a Rs 6,549-crore hit due to depreciation in the value of government securities – the market value of g-secs drops when interest rates rise.