SBI posts disappointing Q1 result

State Bank Of India is an Indian Banking and financial services company. The bank apart from Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Business has also entered into businesses like Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products, etc.

The largest public sector bank SBI announced its First Quarter FY16 result today. The total interest earned reduced by 0.1 per cent to Rs 54120.45 crore as compared to Rs 54175.31 crore in the previous quarter. The total income reduced by 11.33 per cent to Rs 62927.46 crore on sequential basis.

The interest expended increased by 1.9 per cent. The Net Interest Income (NII) reduced by 3.6 per cent to Rs 19148.55 crore from 19871.71 crore Q-o-Q basis. Operating profit decreased by 20.66 per cent to Rs 12332.74 crore, operating profit margin contracted by 230 basis points to 19.6 per cent.

The Provisions and Contingencies decreased by 31.25 per cent to Rs 5294.48 crore on sequential basis. The Net profit slightly increased by 0.41 per cent to Rs 4713.57 crore compared to Rs 4694.11 crore Q-o-Q basis. The Gross NPA stood at 4.29 per cent compared to 4.25 per cent in the previous quarter. The Net NPA stood at 2.24 per cent against 2.12 per cent in the previous quarter.

SBI changed its shareholding pattern during the quarter, where the FII holdings reduced by 18 basis points to 11.54 per cent and DII holdings reduced by 39 basis points to 18.34 per cent.

Today, after the result announcement SBI is trading 4 per cent lower at Rs 271.