The bottomline was in line with Bloomberg estimates of ₹14,329 crore, but lower 15% on a quarter-on-quarter (QoQ) basis.
Higher provisions related to pending employee wage revision led the sequential fall in the bank's bottomline, and impacted operating profit which was lower 8.1% YoY and down 23% QoQ at ₹19,471 crore during Q2.
"Operating expenses have increased by 34.60% on account of increase in provision for wage revision at a higher rate of 14%, which has fallen from November 2022. As a result, operating profit has come down," SBI chairman Dinesh Khara said in a post earnings conference. During Q2, SBI made employee wage revision related provisions amounting to ₹3,417 crore. In the first quarter, it had made provisions of ₹1,494 crore. Overall, since November, the bank has made ₹8,895 crore of provisions. Going forward, the bank does not foresee such major provisions, as the current quantum should suffice for a 14% hike, the management said.
This story is from the November 05, 2023 edition of Financial Express Mumbai.
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This story is from the November 05, 2023 edition of Financial Express Mumbai.
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