- Net profit fell 6.7%, missing forecasts
- The company reports mark-to-market losses
- He says he hopes to recover those losses this year
MUMBAI, Aug 6 (Reuters) – State Bank of India ( SBI.NS ) missed estimates on Saturday with a 6.7% drop in first-quarter net profit due to investment losses that India’s biggest lender said it had in expected to return in the sustainable period. years
In the quarter to June 30, the bank recorded mark-to-market (MTM) losses of Rs 65.49 crore.
This brought SBI’s other revenue down to Rs 23.12 billion from Rs 118.02 billion a year ago.
“We will recover most of the brand-market losses this year,” SBI Chairman Dinesh Khara said at a press conference.
“If we go with the rate of 7.30% that was closed yesterday, we can write back 19 billion rupees from MTM.”
Net income fell to 60.68 billion rupees, well below the 78.19 billion expected by analysts, Refinitiv Eikon data showed.
Oil bad loans as a percentage of total assets improved, falling to 3.91% from 3.97% in the previous quarter.
The bank does not anticipate moving forward on asset quality, Khara said.
SBI expanded its domestic loans by 14.93% year-on-year, driven by strong growth in retail loans and it expects growth to grow at a similar rate during the year.
Most Indian banks have seen healthy growth as economic activity has returned following widespread COVID-19 restrictions.
Deposits grew by 8.73 percent, registering a slight decline from the March quarter.
($1 = 79.3600 Indian Rupees)
Report by Nupur Anand; Editing by Kim Coghill
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