09/08/2023
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The Covid-19 pandemic has significantly impacted India's corporate profit league table, with Reliance Industries losing out to State Bank of India (SBI) in the 2023-24 Q1. SBI reported a consolidated net profit of Rs 66,860 crore during the trailing 12-month period, ahead of RIL's TTM adjusted net profit of Rs 64,758 crore. This marks the second time in the past two decades that SBI has reported a higher net profit on a TTM basis. RIL lost its position in the league table due to a decline in refining and petrochemicals due to adverse price movement in global fuel and patches after the Russia-Ukraine war. RIL's consolidated net profit was down 10.6% YoY to Rs 16,011 crore in Q1FY24, it's worst showing in 11 quarters. SBI reported another quarter of record-high earnings, thanks to faster credit growth, rising spread between interest on loans and deposits, and the reversal of past bad loans. The turnaround in SBI's net profit from losses until Q1 of 2018-19 is part of the growing heft of the banking, financial services and insurance (BFSI) and stockbroking sectors in the Indian economy and the corporate sector.