State Bank of India (SBI), the country’s largest public sector lender, announced its highest-ever quarterly net profit of Rs 16,694 crore for the March quarter of the financial year 2022-23, marking an impressive 83 percent increase compared to the same period last year.
Here are the key highlights from SBI’s earnings report:
Profit Surge: SBI witnessed a remarkable year-on-year rise in net profit, reaching Rs 16,694 crore from Rs 9,113 crore in the corresponding quarter of the previous fiscal year. Moreover, SBI’s gross non-performing assets (GNPA) reduced to Rs 90,027 crore in FY23, a significant improvement from Rs 1.12 lakh crore in the previous year.
Decrease in NPAs: The GNPA ratio declined to 2.78 percent for the fourth quarter, down from 3.97 percent in the same period last year, marking the bank’s lowest GNPA ratio in the past decade. Net non-performing assets (NNPA) also decreased to Rs 21,466 crore in the March quarter from Rs 27,965 crore, resulting in a NNPA ratio decline from 1.02 percent to 0.67 percent compared to the previous year.
Segment Growth: SBI witnessed growth across its various segments. The treasury segment revenue increased to Rs 28,470 crore in the March quarter from Rs 24,098 crore in the previous year. Additionally, corporate and wholesale banking operations saw significant growth, reaching Rs 29,505 crore from Rs 19,825 crore on a year-on-year basis. The retail banking segment, which includes digital banking, also experienced substantial growth, rising to Rs 48,091 crore from Rs 38,075 crore in the previous year.
Share Performance: As of 2:23 pm, SBI’s shares were trading at Rs 578.45 on NSE, reflecting a 1.34 percent decrease from the previous close.
Deposit Growth: SBI’s deposits grew by 9.19 percent year-on-year, with current account and savings account (CASA) deposits growing by 4.95 percent in the same period. The CASA ratio stood at 43.80 percent as of March 31, 2023.