Public lender State Bank of India's shares opened in the positive territory on Monday in line with the broader market after the bank reported 8.03% year-on-year growth in net profit ₹14,330 crore for the July-September quarter of 2023-24.

The share of the banking heavyweight opened a gap up at ₹583 on the BSE, taking the bank's m-cap to ₹5,14,593.12 crore. At the filing of the report, though, the stock was trading 0.30% down at ₹576.4.

The country's largest lender’s operating profit for the said quarter grew 8.07% on a year-on-year basis to ₹19,417 crore. The ROA and ROE for the half year stood at 1.10% and 22.57%, respectively.

The net interest income for the quarter surged 12.27% to ₹39,500 crore, while NIM (net interest margin) was 3.43, down 12 bps as compared to 3.55 in the year-ago period.

SBI's net profit for the previous quarter (Q) stood at ₹16,884 crore, up 15.13% from Q2 FY24 profit.

In terms of the balance sheet, the credit growth of the bank surged 12.39% year-on-year with domestic advances growing 13.21% year-on-year, while foreign office advances surged 8.11% on a year-on-year basis.

The domestic advances, says SBI, were driven by SME advances (up 22.75%), followed by retail personal advances that surged 15.68% YoY.

Agri and corporate loans also recorded 14.7% and 6.62%, respectively. While bank deposits surged 11.91% year-on-year, of which CASA deposits surged 4.91%. The bank's CASA ratio stood at 41.88% as of September 30, 2023.

Regarding asset quality, SBI's gross NPA ratio improved 97 bps year-on-year to 2.55%, while the net NPA ration improved 16 bps YoY to 0.64%.

Capital Adequacy Ratio (CAR) at the end of Q2 FY24 improved by 77 bps YoY and stood at 14.28%.

The lender says it acquired 61% of the total accounts and 39% of retail asset accounts via YONO mobile app. The share of alternate channels in total transactions increased from 96.8% in H1 FY23 to 97.7% in H1 FY24.

The bank last week said it raised ₹10,000 crore through bonds for the current financial year. The funds were raised at a coupon rate of 7.81% through its first Basel III compliant Tier 2 bond issued for 15 years tenor, with the first call option after 10 years.

In September this year, SBI raised ₹10,000 crore at a coupon rate of 7.49% through its fourth infrastructure bond issuance, which will be used for enhancing long-term resources for funding infrastructure and affordable housing segment. Prior to this, the bank raised long-term bonds of ₹10,000 crores on August 1, 2023, at a spread of 13 basis points (bps) over corresponding FBIL G-Sec par curve.

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