State Bank of India (SBI) reported a 178.24% jump in net profit to Rs 16,884 crore for the quarter ended June 2023 compared to Rs 6,068 crore a year before.
The state-owned lender’s operating profit in the fiscal first quarter grew 98.37% YoY to Rs 25,297 crore from Rs 12,753 crore in the earlier-year quarter.
NII, NIM
The bank’s net interest income (NII) in the fiscal first quarter rose 24.71% to Rs 38,905 crore.
Net interest margin (NIM) of the country’s largest bank stood at 3.33%, up from 3.02% a year ago. Domestic NIM increased 24 basis points YoY to 3.47% from 3.23%. On a sequential basis, NIM was at 3.6%.
Asset quality improves
The bank’s gross non-performing assets (NPAs) declined to 2.76% compared to 2.78% quarter-on-quarter and 3.91% YoY.
Net NPA ratio stood at 0.71%, down by 29 bps YoY.
In absolute terms, the gross NPA fell to Rs 91,327.84 crore from Rs 113,271.72 crore YoY.
Provisions
Provisions stood at Rs 2,501 crore versus Rs 4,392 crore YoY and Rs 3,316 crore QoQ.
The provision coverage ratio (PCR) fell 23 basis points YoY to 74.82% while the slippage ratio improved 44 basis points YoY to 0.94%.
Slippages for the June quarter stood at Rs 7,659 crore, down 21.37% from Rs 9,740 crore last year.
Credit cost for Q1FY24 improved by 29 basis points YoY to 0.32%.
The return on assets (ROA) reduced 1 basis points QoQ to 1.22% while the debt to equity ratio also went down to 0.64 vs 0.66 in Q4 of FY23. Return on equity was at 24.42% for the June quarter.
Capital adequacy ratio (CAR) as at the end of Q1FY24 improved by 113 basis points YoY to 14.56%.
Loan growth
SBI reported credit growth at 13.90% YoY with domestic advances growing at 15.08% YoY.
Retail personal advances grew to Rs 12.04 lakh crore from Rs 10.34 lakh crore. Lending to the corporate sector increased to Rs 9.82 lakh crore from Rs 8.74 lakh crore, SME to Rs 3.69 crore from Rs 3.12 lakh crore and agriculture to Rs 2.64 lakh crore from Rs 2.29 crore.
"We are looking at a credit growth of 14-15% in FY24,” SBI chairman Dinesh Khara said.
Deposits
SBI’s deposits grew 12% YoY to Rs 45.31 lakh crore, from Rs 40.45 lakh crore a year ago.
CASA (current account savings account) deposits grew by 5.57% YoY. CASA ratio stood at 42.88% as on 30 June 2023.
