State Bank of India Q1 results: PAT rises 1% to Rs 17,035 crore

State Bank of India

The country's largest lender, State Bank of India (SBI) on August 3 reported around a 1 percent rise in its net profit to Rs 17,035.16 crore in the first quarter of the current financial year.

On a sequential basis, net profit fell 17.7 percent.

Additionally, the Central Board has approved raising funds in INR and/or USD by the issue of Basel lll compliant Additional Tier 1 Bonds and Tier 2 Bonds, up to Rs 25,000 crore to Indian and/or overseas investors during FY25.

Asset quality

The gross non-performing assets (NPA) ratio of the bank stood at 2.21 percent as of June 30, as compared to 2.24 percent as of March 31, and 2.76 percent on June 30, 2023.

The net NPA of the bank stood at 0.57 percent as of June 30, as against 0.57 percent as of March 31, and 0.71 percent as of June 30, 2023.

In absolute terms, gross NPAs stood at Rs 84,226.04 crore as of June 30, as compared to Rs 84,276.33 crore as of March 31, and Rs 91,327.84 crore as of June 30, 2023.

Net NPA stood at Rs 21,554.69 crore as on June 30, as compared to Rs 21,051.08 crore as on March 31, and Rs 22,995.37 crore as on June 31, 2023.

PCR (with AUCA) stands at 91.76 percent with Provision Coverage Ratio (PCR) being at 74.41 percent, as per press release. Slippage Ratio for Q1FY25 improved by 10 basis points (bps) on-year and stands at 0.84 percent.

Credit Cost for Q1FY25 stands at 0.48 percent.

Deposits

In the reporting quarter, deposits of the bank increased 8.18 percent on-year to rs 49.02 lakh crore. In a year ago period, it stood at Rs 45.31 lakh crore. However, on sequential basis, bank's deposit fell marginally by 0.29 percent.

Under deposits, domestic CASA rose 2.59 percent on-year to Rs 19.15 lakh crore in April-June quarter. Whereas, domestic term deposits jumped by 12.20 percent on-year to Rs 27.9 lakh crore.

CASA ration of the state-owned lender fell sharply by 218 bps on-year and 41 bps on a sequential basis. CASA ratio of the bank stood at 40.70 percent as on June 30, as compared to 41.11 percent as on March 31, and 42.88 percent as on June 30, 2023.

Advances

In April-June quarter, gross advances of the bank grew 15.39 percent on-year to Rs 38.12 lakh crore. On sequential basis, gross advances grew only 1.18 percent.

Domestic Advances growth is driven by SME Advances (19.87 percent on-year) followed by Agri Advances which grew by 17.06 percent on-year, press release said.

Domestic corporate advances grew to Rs 11.39 lakh crore in June quarter, as compared to Rs 11.38 lakh crore in a quarter ago period, and Rs 9,82 lakh crore in a year ago period.

Domestic retail personal advances rose by 13.60 percent on-year to Rs 13.68 lakh crore.

NII and NIM

The net interest income of the bank in April-June quarter rose just by 5.71 percent on-year to Rs 41,125 crore. In a year ago period it stood at Rs 38,905 crore.

The net interest margins of the bank fell by 11 bps on-year to 3.22 percent as of June 30, as against 3.33 percent in a year ago period, according to the investors presentation.

Domestic net interest margins also fell by 12 bps to 3.35 percent in April-June quarter, from 3.47 percent in a year ago period.

Capital Adequacy Ratio (CAR) as at the end of Q1FY25 stands at 13.86 percent.