SBI Q4 results: Profit rises 83% YoY to Rs 16,695 crore, beats estimate

State Bank of India Q4 earnings: The Board has declared a dividend of Rs 11.30 per share @ 1,130 per cent for the year ending March 31, 2023

SBI Q4 results: State Bank of India (SBI), on Thursday, reported a standalone net profit of Rs 16,694.51 crore for the January to March quarter (Q4) of financial year 2022-23 (FY23). 
 

The profit rose 83.18 per cent over last year’s profit of Rs 9,113.5 crore on the back of a healthy loan book, and net interest income (NII). The bottom-line beat Bloomberg’s estimate of Rs 15,186 crore. 

The Board has declared a dividend of Rs 11.30 per share @ 1,130 per cent for the year ending March 31, 2023.

On the bourses, shares of SBI slipped 1.77 per cent to end at Rs 574 per share. By comparison, the benchmark S&P BSE Sensex slipped 0.2 per cent, while the BSE Bankex added 0.11 per cent. 

Loan book

 

SBI's loans at the end of Q4FY23 stood at Rs 32.69 trillion, recording a rise of 16 per cent over Q4FY22. Sequentially, the loan book grew 4.3 per cent over outstanding loans worth Rs 31.33 trillion at the end of Q3FY23. 

Personal loans did the heavy-lifting as they rose 17.6 per cent YoY to Rs 11.79 trillion. Of these, homes loans were Rs 6.4 trillion. State Bank's corporate loan book grew 12.5 per cent YoY to Rs 9.79 trillion.

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Deposits, meanwhile, jumped 9.2 per cent on year/5 per cent QoQ to Rs 44.24 trillion. Domestic CASA deposits increased a meagre 5 per cent YoY/3.5 per cent QoQ to Rs 18.62 trillion. Term deposits, on the contrary, surged 11.45 per cent YoY/6.4 per cent QoQ to Rs 23.9 trillion.

Effectively, CASA ratio fell 148 bps YoY to 43.8 per cent from 45.28 per cent.

The NII came in at Rs 40,393 crore, up 29.5 per cent year-on-year (YoY) from Rs 31,197.9 crore. Sequentially, it rose 6 per cent from Rs 38,068.6 crore.

Net interest margin (NIM) for Q4FY23 increased by 44 bps YoY to 3.84 per cetn as against from 3.01 per cent last year and 3.41 per cent QoQ. 

Asset quality
The lender's asset quality improved considerably with the gross non-performing assets (GNPAs) falling to Rs 90,928 crore in Q4FY23, down 19 per cent YoY from Rs 112,023.4 crore seen at the end of Q4FY22. On a quarterly basis, GNPAs fell 7.5 per cent.

In terms of GNPAs as a percentage of total advances, GNPA ratio improved to 2.78 per cent from 3.97 per cent YoY and 3.14 per cent QoQ.

This was the lowest level that the bank has seen in over 10 years. Bank remains well capitalised with CET-1 at 10.27 per cent.

NNPAs, meanwhile, reduced to Rs 21,466.64 crore from Rs 27,965.71 crore YoY and Rs 23,484.3 crore QoQ. NNPA ratio, thus, stood at 0.67 per cent at the end of  the March quarter as against 1.02 per cent in Q4FY22 and 0.77 per cent in Q3FY23.

"Expected credit loss (ECL) is a reflection of underwriting standards. It is a fiction till there is some clarity from the RBI. Retail book is provided to the extent of 48 per cent, while corporate book is provided for 88 per cent. Our non-NPA provisions are over Rs 35,500 crore," said Dinesh Khara, chairman, SBI. 

FY23 snapshot

SBI's net profit for FY23 crossed Rs 50,000-crore mark and stood at Rs 50,232 crore, up 58.58 per cent YoY. Operating Profit, meanwhile, grew by 11.18 per cent YoY to Rs 83,713 crores. 

NII for the year jumped around 20 per cent YoY to Rs 1.44 trillion with NIM at 3.58 per cent.

Slippages for the year fell to Rs 18,421 crore from Rs 25,021 crore seen at the end of Fy22.