SBI pre-tax profit sees 10-fold jump to Rs 4,970 cr in Q4; stock rises 7.9%

Referring to Covid-19, the SBI chairman said that the situation continues to be uncertain and major challenges would arise from extended working capital cycle and waning cash flows

State Bank of India (SBI), the country’s largest lender, posted an over tenfold rise in profit before tax (PBT) to Rs 4,970 crore for the quarter ended March 2020 (Q4FY20). The jump was mainly due to a decline in provisions and contingencies, and a one-time gain of Rs 2,731 crore arising from the sale of some stake in subsidiary SBI Cards & Payment Services. The lender had posted a PBT of Rs 431.20 crore in Q4FY19.

While the performance was lower than expectations, the positive commentary by the management helped the SBI stock close 7.9 per cent higher at Rs 187.8