State Bank of India (SBI), India’s largest lender, has reported a consolidated net profit of ₹16,099.58 crore for the September quarter, marking a substantial 9.13% growth.On a standalone basis, SBI achieved a net profit of ₹14,330.02 crore in the September quarter. The bank’s net interest income (NII) grew by a notable 12.3% year-on-year.SBI’s total income for the quarter exceeded ₹1.12 lakh crore, a significant increase from ₹88,733 crore in the year-ago period.
Kaitav Shah, Hd-BFSI, Anand Rathi Instl Eq said, “The numbers broadly seem to be in line with what has been the expectation. We just have to look at what kind of growth SBI did. I think they generally deliver in line with what the credit growth for the system has been? NII growth at ₹39,500 crore is very much in line with our expectation. We will just await what is happening at the pre-provisioning operating profit level to get a better view on or a sense on what the numbers have been. We were any which ways expecting a benign asset quality for this quarter.”
The operating profit of the bank declined by 8.07% during the quarter to ₹19,417 crore, and SBI’s return on assets (ROA) stood at 1.01% during the quarter, reflecting a 3 bps decline.The net interest margin (NIM) for SBI during Q2FY24 was 3.43%, a 12 bps decline, while for H1, the figure increased by 6 bps year-on-year to 3.45%.
In terms of asset quality, SBI’s Gross Non-Performing Assets (GNPA) improved by 97 bps year-on-year to 2.55%, and the Net NPA improved by 16 bps to 0.64%. The Provision Coverage Ratio (PCR) for the quarter ending September 2023 stood at 75.45%, a 248 bps decrease year-on-year. The Slippage Ratio for Q2FY24 increased by 13 bps year-on-year, reaching 0.46%, while for H1, it improved by 16 bps year-on-year, standing at 0.70%.
SBI’s credit cost improved by 6 bps year-on-year to 0.22% during the period under review. The Capital Adequacy Ratio (CAR) at the end of Q2FY24 improved by 77 bps year-on-year, reaching 14.28%.
Regarding the balance sheet, the credit growth of State Bank of India increased by 12.39% year-on-year during the quarter ending September 2023, with domestic advances growing by 13.21% year-on-year. Strong growth in SME Advances (22.75%) and Retail Personal Advances (15.68%) contributed to the growth of domestic advances.
