 "SBI Q4 results: Profit up 24% YoY to Rs 20,698 cr; stock hits record high")
SBI Q4 results: State Bank of India (SBI), India's largest state-owned bank, reported a standalone net profit of Rs 20,698.35 crore, up 24 per cent year-on-year (Y-o-Y), on the back of higher interest income and low provisions.
The bank had reported a net profit of Rs 16,694.5 crore in the March quarter of the previous fiscal (Q4FY23).
The number beat analysts' estimates by a wide margin, who had pegged PAT in the range of Rs 10,432 crore to Rs 14,743 crore. On the bourses, shares of SBI gained 3.6 per cent in the intraday to hit a fresh record high of Rs 839.6 apiece. By comparison, the S&P BSE Sensex was down 1.2 per cent at 2:40 PM.
Sequentially, SBI's net profit more-than-doubled, zooming 125 per cent from Rs 9,163.96 crore posted in the December quarter of FY24 (Q3FY24).
For the entire financial year, net profit came in at Rs 61,077 crore, witnessing a growth of 21.59 per cent Y-o-Y after accounting for wage settlement and one-time exceptional item of Rs 7,100 crore.
SBI Q4 NII, NIM
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Meanwhile, operationally, net interest income (NII) of SBI rose 3 per cent Y-o-Y to Rs 41,656 crore, up from Rs 40,392.5 crore posted in Q4FY23.
Net interest margin (NIM) rose unexpectedly to 3.30 per cent from 3.22 per cent Q-o-Q. It was 3.60 per cent in Q4FY23.
Operating profit (before provisions and contingencies) came in at Rs 28,747 crore for the March quarter, up 16.7 per cent from Rs 21,621 crore reported last year. In the December quarter, the operating profit was Rs 20,336 crore.
Operating profit for FY24 grew by 12.05 per cent Y-o-Y to Rs 93,797 crore.
SBI Q4 dividend announcement
The Board of the Bank has declared a dividend of Rs 13.70 per equity share for the financial year ended 31.03.2024, The record date for determining the eligibility of shareholders, entitled for the dividend, has been fixed as Wednesday, May 22, 2024. Dividend payment date is fixed as June 5, 2024.
SBI Q4 asset quality and provisions
SBI's total provisions for the March quarter declined to Rs 1,609.78 crore from Rs 3,315.7 crore in the year-ago period. These, however, increased sequentially from Rs 687.85 crore set aside in Q3FY24.
SBI reported slippages of Rs 3,984 crore, down from Rs 5,046 crore Q-o-Q.
Gross NPAs slipped marginally by 2.8 per cent to Rs 84,276.3 crore from Rs 86,748.8 crore reported in Q3FY24. On a yearly basis, GNPA slipped from Rs 90,928 crore.
In percentage terms, GNPA ratio improved to 2.24 per cent in Q4FY24 vs 2.4 per cent in Q3FY24 and 2.78 per cent in Q4FY23.
Similarly, NNPAs, in absolute terms, declined to Rs 21,051 crore in Q4FY24 from Rs 21,467 crore Y-oY and Rs 22,408 crore Q-o-Q.
NNPA ratio, thus, came in at 0.57 per cent in the quarter under study as against 0.67 per cent Y-o-Y and 0.64 per cent Q-o-Q.
Provision Coverage Ratio (PCR) stood at 75.02 per cent at the end of FY24, with Slippage Ratio at 0.62 per cent, and Credit Cost at 0.29 per cent.
SBI Q4 loans and deposits
State Bank of India reported credit growth of 15.24 per cent Y-o-Y at Rs 37.67 trillion, with domestic advances growing 16.26 per cent Y-o-Y/5.1 per cent Q-o-Q.
Corporate advances and agri-advances crossed Rs 1.1 trillion and Rs 3 trillion, respectively. That apart, Retail Personal Advances and Corporate loans registered Y-o-Y growth of 14.68 per cent and 16.17 per cent, respectively.
On the deposit side, total deposits came at Rs 49.16 trillion, up 11.13 per cent Y-o-Y/3.23 per cent Q-o-Q.
Whole Bank Deposits grew at 11.13 per cent Y-o-Y, out of which CASA Deposit grew by 4.25 per cent Y-o-Y. CASA ratio stood at 41.11 per cent at the end of March 2024.