Indian state-owned lender SBI reported a 6.7% YoY decrease in net profits to INR 65bn ($820mn) for the quarter ended June, missing analyst expectations of INR 74.96bn ($940mn). The dip in profits was impacted by MTM Losses on its investment book. The bank’s total income declined 3% YoY to INR 749.9bn ($9.5bn) as non-interest income fell sharply by 80.5% YoY to INR 23.1bn ($290mn). The decline in non-interest income was largely due to INR 65.5bn ($830mn) of MTM losses. Net interest income rose 12.9% to INR 312bn ($3.9bn). Retail personal loans, Agri loans, SME, and Corporate loan portfolios grew by 18.6%, 9.8%, 10%, and 10.6% respectively. Loan loss provisions declined by 15.1% YoY to INR 42.7bn ($540mn) during the quarter. Net interest margins (NIM) rose 8bp YoY to 3.23%. Net non-performing assets (NPAs) improved 77bp YoY to 1% while gross NPAs also improved by 141bp YoY to 3.91%. SBI’s Tier-1 capital adequacy ratio was at 9.72%, down 19bp YoY.

SBI’s USD 4.5% 2023s were down 0.13 points at 100.49, yielding 4.05%.

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