SBI Q1 Earnings: Bank’s Net Profit Zooms 178% To Rs 16,884 Crore; NII Up 24.7% YoY

SBI Q1 Results: State Bank of India (SBI), the largest public sector bank in the country, announced it’s results for quarter ending June 30. The lender’s net profit in Q1FY24 zoomed 178% to Rs 16,884 crore from Rs 6,068 crore, YoY.

SBI net interest income in the quarter ended June 2023 rose 24.5% to Rs 38,904 crore from Rs 40,392.5 crore, YoY.

Its gross NPA reduced to 2.76% vs 2.78% quarter-on-quarter (QoQ) and 3.9% YoY.

The banking behemoth’s asset quality deteriorated on a sequential basis, with its net non-performing assets (NPAs) — or bad loans — at 0.71% in the June quarter as against 0.67% for the previous three months, according to the filing.

SBI’s capital adequacy ratio (Basel III) came in at 14.56% vs 14.68% sequentially. The earnings per share (EPS) rose to Rs 18.92 vs Rs 18.71 QoQ.

The return on assets reduced 1 bps QoQ to 1.22% while the debt to equity ratio also went down to 0.64 vs 0.66 in Q4 of FY23.

On the balance sheet side, credit growth was recorded at 13.90% YoY with domestic advances growing at 15.08% YoY. Auto loans crossed the Rs 1 lakh crore figure mark while agri and corporate loans registered YoY growth of 14.84% and 12.38%, respectively.

Domestic Advances growth was driven by SME Advances (18.27% YoY) followed by Retail Personal Advances which grew by 16.46% YoY.

The provision Coverage Ratio (PCR) slipped 23 bps YoY to 74.82% while the slippage ratio improved 44 bps YoY to 0.94%.

Credit Cost for Q1FY24 improved by 29 bps YoY to 0.32%. Capital Adequacy Ratio (CAR) as at the end of Q1FY24 improved by 113 bps YoY and stands at 14.56%.

Despite a challenging quarter, SBI said its gross advances level displayed resilience and the 15 bps YoY reduction in gross NPA underlined continued improvement in the quality of assets.

Following the release of the quarterly numbers, SBI shares slipped 3% and were trading at Rs 572.80 on BSE.