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State Bank of India swings to fiscal Q1 net profit as provisions fall

State Bank of India reported a consolidated net profit of 29.51 billion rupees for the quarter ended June 30, compared to a net loss of 42.30 billion rupees in the year-ago quarter, as provisions and contingencies more than halved year over year.

EPS for the fiscal first quarter was 3.31 rupees, compared to a per-share loss of 4.74 rupees, India's largest banks by assets said Aug. 2.

The S&P Global Market Intelligence consensus normalized estimate for the fiscal first quarter was 3.21 rupees per share, while the consensus GAAP EPS was 3.33 rupees, with four analysts reporting.

Interest earned rose to 655.94 billion rupees from 612.01 billion rupees, while income on investments dropped to 185.87 billion rupees from 198.94 billion rupees in the year-ago quarter. Domestic net interest margin was 3.01%, compared to 2.95% in the prior-year quarter.

The bank's provisions and contingencies more than halved to 94.49 billion rupees from 194.99 billion rupees in the prior-year period.

Operating profit rose to 151.34 billion rupees from 134.34 billion rupees in the quarter ended June 30, 2018.

The bank said its stand-alone gross NPA ratio was 7.53%, flat with the previous quarter but down from 10.69% as of June 30, 2018. Its stand-alone net NPA ratio was 3.07% as of June 30, compared to 3.01% as of March 31 and 5.29% as of June 30, 2018.

State Bank of India's stand-alone capital adequacy ratio came in at 12.89% as of June-end, compared to 12.72% as of March 31 and 12.83% as of June 30, 2018.

As of Aug. 1, US$1 was equivalent to 68.94 Indian rupees.