SBI  Q1 results Profit surges 178%

The State Bank of India Limited (SBI) reported an impressive 178.24% year-on-year (YoY) rise in standalone net profit, reaching Rs 16,884.29 crore for the June quarter. This marked significant growth compared to Rs 6,068.08 crore recorded in the same quarter last year, making it the fourth consecutive quarter with a record net profit. The actual profit figure exceeded analysts' expectations, who had forecasted growth between 120-160% before the quarterly results were announced.

SBI

During the quarter, net interest income (NII) amounted to Rs 38,905 crore, representing a substantial 24.71% increase compared to Rs 31,196 crore in the corresponding quarter of the previous year. The NII results were generally in line with the estimates from the financial community. Additionally, the net interest margin (NIM) improved by 24 basis points YoY, rising to 3.47% in the June quarter from 3.23% in the same period last year. However, the NIM showed a decline of 37 basis points compared to 3.84% in the March quarter.

The bank's asset quality demonstrated improvement,  as the gross non-performing assets ratio stood at 2.76%, a significant decrease of 115 basis points from the year-ago's 3.91%. SBI made provisions of Rs 2,501.31 crore during the quarter, which were lower than the provisions made in both March and the same quarter of the previous year (Rs 3,315.71 crore and Rs 4,392.38 crore, respectively).

In terms of growth, the bank reported a 13.90% YoY increase in gross advances, reaching Rs 33,03,731 crore as of June 30, 2023, compared to Rs 29,00,636 crore as of June 30, 2022. Additionally, deposits increased by 12% YoY, reaching Rs 45,31,237 crore from Rs 40,45,696 crore in the corresponding period of the previous year.

Regarding asset quality metrics, the slippage ratio for the quarter stood at 0.94%, an increase from 0.41% in March but a decline from 1.38% in the year-ago quarter. Similarly, credit cost for the quarter was recorded at 0.32%, up from 0.16% in March but down from 0.61% in the same quarter last year.

In a presentation, SBI highlighted that the total non-NPA provisions (not included in PCR) amounted to Rs 34,955 crores, equivalent to 152% of net NPAs at the end of Q1FY24.

Disclaimer: The information provided in the above article about the State Bank of India Limited (SBI) is for general informational purposes only. While efforts have been made to ensure accuracy, we do not guarantee the completeness or reliability of the content. Readers should conduct their own research and consult financial experts before making any decisions based on this information. The article is not financial advice and does not endorse any specific actions. We are not responsible for any losses or damages resulting from the use of this article. The State Bank of India Limited and other mentioned entities do not endorse this article. Trademarks, logos, and brand names belong to their respective owners. This disclaimer may change without notice.