Corporate News
One-time gain: SBI net profit soars 81% to Rs 4,189 crore in Q1

State Bank of India (SBI) on Friday reported an 81.2% year-on-year (y-o-y) jump in net profit to Rs 4,189 crore for the three months to June. The sharp jump in profits was fuelled by an improvement in the asset quality and an exceptional gain arising from a stake sale of 2.1% in its subsidiary, SBI Life Insurance, which fetched it `1,539 crore. The country’s largest lender, which has taken the approval of shareholders to raise Rs 20,000 crore during the year, reported an operating profit of Rs 18,061 crore, up 36% y-o-y. Provisions increased by 27% y-o-y toRs 13,872 crore. FE learnt that SBI has provided 100% for Dewan Housing Finance Corporation (DHFL), after declaring it a ‘fraud’ account. The lender has also made a provision of Rs 1,836 crore on account of Covid-19. The provision coverage ratio (PCR) in the June quarter has improved to 86.32%, up 698 bps y-o-y.

News Source:- https://www.financialexpress.com/industry/banking-finance/one-time-gain-sbi-net-profit-soars-81-to-rs-4189-crore-in-q1/2041457/