 "SBI")
State Bank of India (SBI)'s standalone net profit more-than-doubled to Rs 16,884.29 crore in the June quarter (Q1) of financial year 2023-24 (FY24), driven primarily by higher net interest income (NII) and better loan growth.
Its net profit was Rs 6,068.1 crore in the corresponding quarter of the previous fiscal (Q1FY23).
On a quarter-on-quarter (QoQ) basis, the net profit rose marginally by 1.13 per cent from Rs 16,694.5 crore reported in the March quarter (Q4FY23).
The bottomline was better than what the Street had expected. Analysts had pegged SBI's Q1FY24 profit after tax to come anywhere between Rs 13,760 crore and Rs 16,340 crore.
The bottomline was better than what the Street had expected. Analysts had pegged SBI's Q1FY24 profit after tax to come anywhere between Rs 13,760 crore and Rs 16,340 crore.
Operationally, India's largest state-owned bank clocked a NII of Rs 38,905 crore. This was a 24.7 per cent jump from Rs 31,195.9-crore NII reported in Q1FY23. Sequentially, the net interest income declined 3.6 per cent.
Domestic NIM (net interest margin) for Q1FY24 increased by 24 bps YoY to 3.47 per cent. NIM was 3.23 per cent last year and 3.84 per cent in the March quarter.
Domestic NIM (net interest margin) for Q1FY24 increased by 24 bps YoY to 3.47 per cent. NIM was 3.23 per cent last year and 3.84 per cent in the March quarter.
Operating profit, on the other hand, grew by 98.37 per cent Y oY to Rs 25,297 crore from Rs 12,753 crore during Q1FY23.
Loans and provisions
Loans and provisions
SBI's loan book increased to Rs 33.03 trillion in the quarter that ended on June 30, 2023, up 14 per cent from Rs 29 trillion last year.
Of these, retail loans surged 16.46 per cent year-on-year to Rs 10.34 trillion, while corporate loans advanced 12.4 per cent to Rs 8.74 trillion.
Loan book was largely flat QoQ.
More From This Section
"Domestic advances growth wa driven by SME Advances (up 18.27 per cent YoY) followed by Retail Personal Advances which grew by 16.46 per cent YoY. Auto loans, too, crossed Rs 1 trillion-mark. Agri and Corporate loans registered YoY growth of 14.84 per cent and 12.38 pe cent, respectively," SBI said in a statement.
Deposits, on the other hand, swelled by 12 per cent from Rs 40.45 trillion YoY to Rs 45.31 trillion. Sequentially, they were higher by 2.4 per cent from Rs 44.2 trillion.
Of these, current account-savings account (CASA0 Deposit grew by 5.57 per cent YoY. CASA ratio stood at 42.88 per cent as on June 30, 2023.
SBI's provisions fell 43 per cent on year to Rs 2,501.31 crore in Q1FY24 from Rs 4,398 crore in the year-ago quarter. Sequentially, they declined by 24.57 per cent.
Assey quality
Assey quality
At the bourses, shares of the lender pared all the intra-day gains as non-performng assets climbed pon a quarterly basis.
Gross NPAs were Rs 91,328 crore in Q1FY24 as against Rs 90,928 crore QoQ. As a percentage of gross loans, GNPA ratio stood at 2.76 per cent vs 2.78 per cent QoQ.
NNPAs, meanwhile, came in at Rs 22,995 crore in the June quarter as against Rs 21,467 crore in the March quarter of FY23.
NNPA ratio, thus, increased to 0.71 per cent from 0.67 per cent.
At 1:55 PM, the stock was down 2.3 per cent at Rs 577 per share as against 0.5 per cent rise in the benchmark S&P BSE Sensex.
Slippages, too, jumped over the March quarter as they stood at Rs 7,872 crore from Rs 3,458 crore.
Slippages, too, jumped over the March quarter as they stood at Rs 7,872 crore from Rs 3,458 crore.
Provision Coverage Ratio (PCR) stood at 74.82 per cent, down by 23 bps YoY.
