A man walks in front of a signboard displayed at the head office of State Bank of India (SBI) in Mumbai, India, April 18, 2023. REUTERS/Niharika Kulkarni
| Photo Credit: NIHARIKA KULKARNI
State Bank of India (SBI) reported that its fourth quarter net profit grew 83.18% to ₹16,695 crore from the same quarter last year due to improvement in asset quality and credit growth.
Operating profit for Q4FY23 grew by 24.87% year over year to ₹24,621 crore. The bank’s Net Interest Income (NII) for the quarter increased 29.47% to ₹40,393 crore while its domestic Net Interest Margin (NIM) increased by 44 bps YoY to 3.84% during the quarter.
India’s largest bank’s net profit for FY23 crossed the ₹50,000 crore mark and stood at ₹50,232 crore, up 58.58% from last year. Operating profit for FY23 grew by 11.18% YoY to ₹83,713 crore. NII for FY23 was at ₹1,44,841 crore, marking a rise of 19.99% YoY. Domestic NIM for FY23 increased by 22 bps YoY to 3.58%.
Despite the raising of interest rates by the RBI to curb rising inflation, SBI Chairman Dinesh Khara said, “Credit growth has continued to grow at double digit. We expect credit growth to continue in this financial year as well.”
The bank reported credit growth of 15.99% YoY with Domestic Advances growing by 15.38% YoY.
While foreign offices’ advances grew by 19.55% YoY, the growth in domestic advances was driven by Retail Personal Advances (17.64% YoY) followed by SME Advances which grew by 17.59% YoY, Mr. Khara said.
The bank said it’s ‘Xpress Credit’ loans crossed ₹3 lakh crore. It said Agri and Corporate loans registered YoY growth of 13.31% and 12.52% respectively.
Mr. Khara said demand for credit is coming from infrastructure and renewable sectors.
The bank’s deposits grew at 9.19% YoY, out of which CASA deposits grew by 4.95% YoY. CASA ratio stood at 43.80% as on 31st March 23. Mr. Khara said the bank is not dependant on deposits growth to carry out its lending business.
Indicating improvement in asset quality, the bank’s Gross NPA reduced 18.83% to ₹90,928 crore in FY23 from the previous year. Net NPA was down 23.24% to ₹21,467 crore.
Gross NPA ratio at 2.78% was down by 119 bps YoY and Net NPA ratio at 0.67% was down by 35 bps YoY.
For FY23 the loan loss provision at ₹9,144 crore was down 35.09% and for the Q4 it was down 60.80% at ₹1,278 crore.
Provision Coverage Ratio (PCR) improved by 135 bps YoY to 76.39%, while PCR (Incl. AUCA) improved by 171 bps YoY and stands at 91.91%, the bank said in a filing.
SBI’s Slippage Ratio for FY23 improved by 34 bps YoY and stood at 0.65%, while Slippage Ratio for Q4FY23 stood at 0.41%.
The bank’s credit cost for FY23 improved by 23 bps YoY to 0.32%, while credit cost for Q4FY23 improved by 33 bps YoY to 0.16%.
Capital Adequacy Ratio (CAR) as at the end of FY23 improved by 85 bps YoY and stood at 14.68%.
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