SBI posts record Q4 net profit: Key highlights from earnings

The country’s largest public sector lender State Bank of India (SBI) on May 18 reported its highest-ever quarterly net profit of Rs 16,694 crore for the March quarter of the financial year 2022-23, recording an 83 percent rise from the year-ago period.

Moneycontrol brings to you the highlights of the bank’s earnings report card:

Rise in profit

On a year-on-year (YoY) basis, the public-sector lender recorded an 83 percent rise in net profit at Rs 16,694 crore from Rs 9,113 crore in the corresponding quarter of the previous financial year.

Also read: SBI Q4 result: Net profit climbs 83% to Rs 16,695 crore

For the year, SBI recorded a profit of Rs 50,232 crore, up from Rs 31,675 crore in 2021-22. This is the bank's highest ever quarterly and yearly profit.

Net interest income (NII), the difference between interest earned and spent, rose 29.5 percent to Rs 40,392 crore from Rs 31,197 crore in the previous fiscal.

Improvement in asset quality

In FY23, SBI's gross non-performing assets (GNPA) declined to Rs 90,027 crore from Rs 1.12 lakh crore in the previous year.

The GNPA ratio declined to 2.78 percent for the fourth quarter from 3.97 percent in the year-ago period. This is bank's lowest GNPA ratio in 10 years.

Net NPA declined to Rs 21,466 crore in the March quarter from Rs 27,965 crore and the NNPA ratio slipped to 0.67 percent from 1.02 percent in the year-ago period.

Segment growth

The bank's treasury segment revenue grew to Rs 28,470 crore in the March quarter from Rs 24,098 crore in the year-ago period.

The lender's corporate and wholesale banking operations grew to Rs 29,505 crores from Rs 19,825 crores on YoY basis.

Retail banking, which includes digital banking, grew to Rs 48,091 crore from Rs 38,075 crore in the previous year.

At 2.23 pm, the share was trading at Rs 578.45 on NSE, down  1.34 percent from the previous close.

Deposit growth

The lender's deposits grew by 9.19 percent YoY, out of which current account and savings account (CASA) deposit grew by 4.95 percent
YoY.

CASA ratio stands at 43.80 percent as on 31st March 2023.