State Bank of India Q2FY23 earnings: Here are top five takeaways

The operating profit for the quarter was at Rs 21,120 crore; up by nearly 17 percent on a year on year basis.

Impressive topline

SBI’s net interest income, or the difference between interest earned and interest expended, rose 12.8 percent year-on-year to Rs 35,183 crore, up from Rs 31,184 crore last year. Net Interest margins (NIM) was at 3.55 percent in the reporting quarter from 3.23 percent in June and 3.50 percent in September last year.

The largest Indian lender's interest earned rose 15 percent to Rs 79,859.59 crore while interest expended was Rs 44,676.15 crore.

Robust loan and deposit growth

SBI’s credit growth jumped nearly 20 percent year-on-year with domestic advances growing by 18.15 percent on-year. The growth in domestic advances was driven by corporate advances followed by retail personal loans.

Whole Bank Deposits grew nearly 10 percent YoY, out of which CASA Deposit grew by 5.35 percent. The CASA ratio stood at 44.63 percent as on September-end.

Improved asset quality

Gross non-performing assets (NPA) were 3.52 percent of the total loan book, down from 4.90 percent a year ago. On a net basis, bad loans were 0.80 percent of the loan book compared with 1.52 percent a year go.

Drop in provisions

The lender’s provisions, excluding provision for tax, declined by 25.5 percent year-on-year to Rs 2,011 crore in the reporting quarter, down from Rs 2,699 crore last year. Like most other lenders, SBI had chosen to keep excess provisions on its balance sheet in the prior quarters against potential bad assets. As on September-end, the provision coverage ratio was 77.93 percent.