SBI reports 6.7% dip in standalone net profit at Rs 6,068 cr in Jun qtr

Country’s largest lender State Bank of India’s (SBI) net profit fell 6.7 per cent year-on-year (YoY) to Rs 6,068 crore in April – June quarter (Q1) of FY23 due to a sharp fall in non-interest income because of mark to market losses on the investment book. Net profit missed the Street estimate as analysts polled by Bloomberg had projected a net profit of Rs 8,392 crore.

The public sector lender had reported a net profit of Rs 6,504 crore in the corresponding period of the last year.

Net interest income of the lender grew 13 per cent YoY to Rs 31,196 crore in Q1FY23 but other non-interest income was down 80 per cent during the same period at Rs 2,312 crore as loss on investments came in at Rs 6,549 crore.

Net interest margin, a measure of profitability of banks, stood at 3.23 per cent, up 8 basis points YoY, but down 17 basis points sequentially.

Loan loss provisions was down 15 per cent YoY, but up 31 per cent sequentially to Rs 4,268 crore in Q1FY23.

The asset quality saw improvement with gross non-performing assets (NPAs) of the lender standing at 3.91 per cent at the end of the June quarter, down 141 bps YoY and 6 bps sequentially. Similarly, net NPAs were down 77 bps YoY and 2 bps sequentially to 1 per cent during the same period.

While slippages were down 38 per cent YoY, they jumped 3 times sequentially to Rs 9,740 crore in Q1FY23.

While gross advances grew 15 per cent YoY and 3 per cent sequentially to Rs 29 trillion, domestic advances grew 14 per cent and foreign office advances grew 22.4 per cent. Domestic advances growth was driven by retail personal advances, which reported a 19 per cent YoY growth, out of which home loans grew by 14 per cent YoY.

The corporate loan book grew 11 per cent; SME grew 10 per cent; and the agri book grew 9.82 per cent during the same period.

Deposits of the lender was up 8.73 per cent YoY, but down 0.14 per cent sequentially to Rs 40.45 trillion. Domestic CASA reported a 6.5 per cent YoY growth to Rs 17.67 trillion, taking the CASA ratio to 45.33.

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