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Below is quote on SBI Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

SBI reported a 4% YoY increase in Net interest income for Q1FY22 to Rs. 27,638 crore on the back of 8% YoY growth in advances while domestic NIM’s for the quarter were down by 9bps yoy to 3.15%. Other income was up by 40.5% YoY to Rs. 13,343 crore while operating expenses were up by 27.6% YoY. As a result pre provisioning profits were up by 14.9% YoY to Rs. 18,975 crore. Provisioning for the quarter came in below expectations at Rs. 10,052 crore. As a result the bank posted a profit of Rs 6,504 crore for the quarter up by 55.25% yoy. Due to the second Covid wave there was an increase in GNPA and NNPA for the quarter to 5.32% and 1.77% from 4.98% and 1.50% in Q4FY21. During the quarter the Bank reported lower slippages of ~Rs. 15,666 crore as compared to Rs. 21,934 crore in Q4FY21. Overall the bank posted a solid set of numbers for Q1FY22 despite the second Covid wave and we expect the positive earnings momentum to continue going forward. Post the Q1FY22 results we maintain our positive view on SBI.

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