SBI Q4 profit surges 83% to ₹16,695 crore

India's biggest public sector lender State Bank of India (SBI) has recorded an 83.18% year-on-year jump in its net profit at ₹16,695 crore in the January-March quarter of 2022-23 as compared to ₹9,114 crore during the same period last year.

SBI's full-year profit crossed the ₹50,000 crore mark and stood at ₹50,232 crore, witnessing a growth of 58.58% YoY, the bank says in its stock exchange filing.

The public sector bank's operating profit for FY23 grew 11.18% YoY to ₹83,713 crore, up from ₹75,292 in the previous year; it grew 24.87% YoY in Q4 to ₹24,621 crore, up from ₹19,717 crore in the same period last year.

SBI's net interest income (NII) for Q4 FY23 increased 29.47% YoY to ₹40,393 crore from ₹31,198 crore in the year-ago period. For the whole year, the NII surged 19.99% to ₹1,44,841 crore vs ₹1,20,708 crore in FY22.

While domestic NIM for FY23 surged 22 bps YoY to 3.58%, for Q4FY23 it rose 44 bps to 3.84%.

In terms of the balance sheet, SBI saw credit growth at 15.99%, with domestic advances growing 15.38% on a yearly basis. Foreign offices’ advances grew by 19.55%. The bank said its domestic advances growth was driven by retail personal advances (17.64% YoY), followed by SME advances that grew 17.59% on a yearly basis.

The bank's deposits grew at 9.19% YoY, out of which CASA deposit grew 4.95% and CASA ratio was at 43.80% as on March 31, 2023. Its credit growth business grew 16% year-on-year due to robust growth across all segments, says SBI, adding that its Xpress credit loans surged ₹3 lakh crore in FY23.

In terms of asset quality, SBI said its gross NPA ratio was recorded at 2.78%, down by 119 bps YoY, while its net NPA ratio at 0.67%, down by 35 bps YoY. The PSB's capital adequacy ratio (CAR) at the end of FY23 improved by 85 bps YoY to 14.68%.

SBI has said macro-economic indicators remain buoyant and ASCB's credit growth continues to grow in double digits and is at an 11-year high of 15% in FY23. "GST revenue hit another record in April 2023. In FY23, the government garnered 22% higher revenues compared to the last year... India's exports surged 14% to a record $770 billion during FY23."

The bank also said that in FY24, the country's real GDP growth is expected at 6.5% against an uncertain global economy, while average inflation is expected to remain in the moderate zone (5.2% as projected by the RBI) in FY24.

In FY23, SBI's market capitalisation surged to ₹5,23,250 crore from ₹4,40,474 crore in FY22. Its share price also rose to ₹586.30 as of March 31, 2023, as compared to ₹493.55 as of March 31, 2022. The dividend per share for FY23 was up at ₹11.30 as compared to ₹7.10 in the previous year. While earnings per share increased to ₹56.29 from ₹35.49 in FY22, the book value per share increased to ₹309.89 from ₹269.48 in FY22.