SBI records highest-ever Q1 profit at ₹16,884 cr; NII surges 25%

The country's largest public sector bank, State Bank of India has reported a 178.25% jump in its net profit for Q1 FY24 on a year-on-year basis ₹16,884 crore from ₹6,068 crore during the same period last year. This is SBI’s highest-ever net profit for the fourth quarter in succession.

The PSB's net interest income (NII) for the said period increased 24.71% year-on-year to ₹38,905 crore as compared to ₹31,196 crore in the same period last year, the State Bank of India says in a stock exchange filing.

The bank's operating profit for the quarter grew by 98.37% YoY to ₹25,297 crore from ₹12,753 crore during Q1 FY23. And its domestic net interest margin increased by 24 bps year-on-year to 3.47%.

In its balance sheet, SBI saw credit growth of 13.90% year-on-year, with domestic advances growing at 15.08% and foreign offices’ advancing at 7.44% on a year-on-year basis.

The bank says its domestic advances growth was driven by SME advances at 18.27%, followed by retail personal advances, which grew at 16.46%. The bank's auto loans crossed ₹1 lakh crore, and agri and corporate loans registered YoY growth of 14.84% and 12.38%, respectively.

The bank's whole bank deposits grew at 12%, out of which CASA deposits grew 5.57% and CASA ratio was recorded at 42.88% as on June 30, 2023.

In terms of asset quality, SBI's gross NPA ratio was at 2.76% as of June 30, 2023, down by 115 bps YoY, while the net NPA ratio was recorded at 0.71%, down 29 bps on a year-on-year basis.

Its provision coverage ratio (PCR) was recorded at 74.82%, down by 23 bps on a year-on-year basis, while PCR improved 127 bps YoY to 91.41%. The slippage ratio for Q1 FY24 improved by 44 bps YoY and stood at 0.94% and credit cost improved by 29 bps to 0.32%, the bank informed.

The capital adequacy ratio (CAR) at the end of Q1 FY24 improved by 113 bps to 14.56% on a year-on-year basis.

The bank says 63% of State Bank accounts and 35% of retail asset accounts were acquired digitally through its YONO app. And the share of alternate channels in total transactions increased from 97% in Q1 FY23 to 97.5% in Q1 FY24.

In its investor statement, SBI says the country's macro-economic indicators remain buoyant, with the economy in the "sweet spot" currently.

The shares of SBI are down 2.63% at ₹575.05 on the BSE today. The stock opened the gap up and surged to ₹598.5 but later settled at ₹572.05. At the current share price, SBI's m-cap stands at ₹5,14,236.14.