Analyst Report : State Bank of India , Quarterly Report, Q1 , FY 2015-16

Here is an interpretation made on the basis of these results and the company’s performance in a nut shell. 

Operating profit of the company increases to 21.90% of the total income as compared to 21.17% to 2014 March quarter. With this the net profit of the company goes to 6.61% of total income as compared to 6.32% for the same quarter previous year. Other income increases to 23.66% of total income vs.  21.09 % for the same quarter last year. Interest expended of the company reduces to 63.32 % of the total income as compared to 64.27% for the same quarter previous year. Gross NPA ratio is down by 66 bps to 4.90% in Q1 FY 15 as against 5.56% in Q1 FY 14. Overall company’s performance is better than the last year.

Income		Rs in Crores
Interest earned	Mar ‘ 14	Mar ‘ 15
Interest/discount on advances/bills	37016.2	38,519.93
Income on Investments	11454.72	13,529.16
Interest on balances with Reserve Bank of India and other interbank funds	279.22	292.16
Others	706.93	1,834.06
Total Interest earned (1)	49457.07	54175.31
Other Income(2)	13217.27	16,789.98
Total Income (1+2)	62,674.34	70,965.29
Expenditure
Interest expended (3)	31787.12	34,303.60
Operating Expenses
Employee cost	7,194.30	8,551.60
Other Operating Expenses	10,422.58	12,566.64
Total Operating Expenses(4)	17,616.88	21,118.24
Total Expenses(3 +4)	49,404.00	55,421.84
OPERATING PROFIT	13270.34	15543.45
Provision for NPA and others	7051.53	7,700.98
Profit from Ordinary Activities before tax	6,218.81	7,842.47
Taxes	2196.71	2,929.60
Net Profit from Ordinary Activities after tax	4022.1	4912.87
Share in profit of Associates	102.29	144.45
Less : Minority Interest	160.57	363.21
Net Profit after Minority Interest	3963.82	4694.11

About the Author

This report has been authored by Rohit Chaudhary. Rohit is pursuing his MBA in Finance from Institute of Management, Nirma University, Ahmedabad, Gujarat, India.

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