State Bank of India Q1 Results: Net profit grows 178% to Rs 16,884 crore, asset quality improves

The net non-performing assets (NNPAs) of the bank fell to 0.71 percent compared with 1 percent last year.

State Bank of India (SBI), India's largest lender, on August 4 reported a 178 percent rise in net profit to Rs 16,884 crore for the April-June FY24 quarter from Rs 6,068 crore last year.

According to a poll of three brokerages conducted by Moneycontrol, the public sector bank was expected to report a 147 percent jump in net profit to Rs 15,009 crore. The lender exceeded market expectations.
The poll also showed that the bank would report a 26.7 percent rise in net interest income (NII) to Rs 39,533 crore. Here, the lender reported a NII growth of 24.71 percent where it stood Rs 38,905 crore, missing market expectations.

The net interest margin (NIM) of the bank stood at 3.33 percent from 3.02 percent last year. The domestic IM of the lender grew by 24 bps to 3.47 percent from 3.23 last year. On a sequential basis, the NIM of bank was at 3.6 percent in the March 2023 quarter.

The gross non-performing assets (GNPA) ratio of the bank declined to 2.76 percent as compared with 3.91 percent last year.

The net non-performing assets (NNPAs) ratio of the bank fell to 0.71 percent compared with 1 percent last year.

The total deposits of the bank grew by 12 percent to Rs 45.31 lakh crore from Rs 40.45 lakh crore last year.

The bank showed credit growth of 13.90 percent with domestic advances growing at 15.08 percent. Retail personal advances grew to Rs 12.04 lakh crore from Rs 10.34 lakh crore. Lending to agriculture grew to 2.64 lakh crore from Rs 2.29 lakh crore. Corporate sector lending grew to Rs 9.82 lakh crore from Rs 8.74 lakh crore last year. Lending to small and medium sized enterprises (SME) grew to Rs 3.69 lakh crore from Rs 3.12 lakh crore.

Here, Dinesh Khara, Chairman, SBI, said that the bank is targeting a credit growth of 15 percent in the financial year 2023-24.

"We are looking at a credit growth of 14 to 15 percent in FY24. Our credit growth will be broad based in retail, agriculture, small and medium sized enterprises and corporate sectors," Khara said at a press conference post the results.

Provisions of the lender stood atRs 2,501 crore, compared to Rs 4,392 crore last year.

Slippages of the lender for the April-June FY24 quarter were at Rs 7659 crore down by 21.37 percent from Rs 9740 crore last year.

SBI Mutual Fund IPO

Khara on August 4 said that the plan to launch an initial public offering (IPO) of SBI Mutual Fund is off the focus. "The plan for the IPO is off the focus," Khara said.

Also read: SBI Mutual Fund's IPO plan shelved for now, says SBI chairman Dinesh Kumar Khara

On December 15, 2021, SBI had announced its plan to offload a 6 per cent stake in SBI MF through an IPO and was planning to raise around USD 1 billion. Later, in November 2022, Khara said the planned share sale of the bank's mutual fund subsidiary has been shelved for the time being.

On August 4, the bank's shares closed at Rs 573.20 apiece on the BSE, which was 2.93 percent lower than the previous day's close.