The net interest margin improved by 16 basis points (100bps = 1 percentage point) to 3.5%, which was also reflected in the net income numbers, which rose to Rs 31,184 crore in Q2FY22 from Rs 28,181 crore in the year-ago period.
SBI chairman Dinesh Khara said that, while all indicators pointed to an improvement in the economy, credit demand was yet to pick up. “Our estimate is that capacity utilisation is still at 60%. The utilisation of working capital limits is around 50%, but we are seeing signs of demand in some sectors and our pipline for term loans is Rs 1.5 lakh crore,” he said. Khara added that asset quality improved following better collection efforts.
SBI’s record profit is despite making a provision of Rs 7,418 crore for the family pension scheme. The gross deposits of the bank rose 9.8% year-on-year to Rs 38.1 lakh crore, while gross advances, including investments in corporate bonds and commercial papers, rose 6.2% to Rs 25.3 lakh crore.
The share of low-cost deposits — current and savings accounts — improved to 46.2% of total deposits from 45.4% a year ago. Home loans, which constitute 24% of the loan book, rose 10.7%. However, slippages — when standard account turns into a non-performing one — rose 51% as of September-end to Rs 4,176 crore from Rs 2,756 crore a year ago.
After making provisions, the net non-performing assets (NPAs) of the bank stood at Rs 37,119 crore. The net NPA as a percentage of total loans stood at 1.52%
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