Image Credits-Zee Business
State Bank of India (SBI), the country’s largest lender, reported a standalone net profit of ₹17,035 crore for the first quarter ended June 2024, according to its recent regulatory filing. This figure shows a flat performance compared to the same period last year, signaling stability in a fluctuating economic landscape.
The Q1 results, unveiled on Friday, reflect the bank’s steady financial health amidst a challenging environment marked by global economic uncertainties and domestic market fluctuations. Despite these headwinds, SBI has managed to maintain its profit margins, demonstrating resilience and effective management.
“The flat profit figures are indicative of a stable operational performance, even as we navigate through a dynamic macroeconomic scenario,” said Dinesh Khara, Chairman of SBI. “Our focus remains on enhancing asset quality and driving sustainable growth.”
SBI’s total income for the quarter rose to ₹94,752 crore, a modest increase from ₹93,775 crore in the corresponding period last year. This growth was primarily driven by an uptick in interest income, which reached ₹73,462 crore, up from ₹70,936 crore in the previous year.
However, the bank’s provisions and contingencies surged to ₹11,412 crore, compared to ₹9,943 crore in the same quarter last year. This increase was largely attributed to higher provisions for non-performing assets (NPAs), which continue to pose a significant challenge for the banking sector.
The gross NPA ratio stood at 3.91%, slightly higher than the 3.85% recorded in the previous quarter. Meanwhile, the net NPA ratio improved marginally to 0.97% from 1.02% in the last quarter, indicating better recovery and asset quality management.
SBI’s robust capital adequacy ratio (CAR) remains a strong point, standing at 14.57% as of June 2024, well above the regulatory requirement. This provides a solid buffer to absorb potential shocks and supports the bank’s growth ambitions.
Looking ahead, SBI is poised to continue its focus on digital transformation and expanding its retail banking portfolio. “We are committed to leveraging technology to enhance customer experience and operational efficiency,” Khara added. “Our strategic initiatives are geared towards driving long-term value for our stakeholders.”
SBI’s perfprmance in the first quarter reflects a cautious yet confident approach, balancing growth aspirations along with judiciuos risk management. The organization will aim to adopt the similar approach for the rest of the financial year.