SBI Q1 results: Profit surges 178% to Rs 16,884 crore; asset quality improves

On Friday, State Bank of India Limited (SBI) disclosed a substantial year-on-year increase of 178.24 percent in its standalone net profit, amounting to Rs 16,884.29 crore for the June quarter. This marked a noteworthy rise from the Rs 6,068.08 crore recorded in the corresponding quarter of the previous year. Impressively, this marked the fourth consecutive quarter of record net profit. The profit figure surpassed the growth estimates of 120-160 percent predicted by analysts ahead of the quarterly outcomes.

During the quarter, the net interest income (NII) reached Rs 38,905 crore, marking a notable increase of 24.71 percent compared to the Rs 31,196 crore registered in the same quarter the previous year. This performance aligned well with the expectations of market analysts. The net interest margin (NIM) saw a 24 basis point year-on-year improvement, reaching 3.47 percent in the June quarter compared to 3.23 percent in the corresponding period the previous year. However, NIM experienced a 37 basis point decline from 3.84 percent in the preceding March quarter.

The bank\’s asset quality demonstrated improvement, with the gross non-performing assets ratio coming in at 2.76 percent, which was significantly lower by 115 basis points compared to the 3.91 percent in the same period the previous year. Notably, provisions made by the state-run bank for the quarter amounted to Rs 2,501.31 crore, a decrease from the Rs 3,315.71 crore in March and Rs 4,392.38 crore in the corresponding quarter of the previous year.

SBI indicated that its gross advances surged by 13.90 percent year-on-year to reach Rs 33,03,731 crore, as opposed to Rs 29,00,636 crore recorded on June 30, 2022. Furthermore, deposits experienced a 12 percent year-on-year growth, amounting to Rs 45,31,237 crore from Rs 40,45,696 crore in the same period of the preceding year.

The slippage ratio stood at 0.94 percent, surpassing the 0.41 percent in March and falling below the 1.38 percent seen in the same quarter of the previous year. The credit cost rose to 0.32 percent, compared to 0.16 percent in March and 0.61 percent in the same quarter of the previous year.

Additionally, the total non-NPA provisions, which are not included in the provision coverage ratio (PCR), reached Rs 34,955 crores, amounting to 152 percent of the net non-performing assets at the conclusion of Q1FY24.

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