State Bank of India, the country’s largest lender, on Thursday reported a jump of 83 per cent in its net profit to Rs 16,694.51 crore for the March 2023 quarter. Its net interest income during January-March 2023 stood at Rs 40,392.50 crore, about 29.5 per cent higher as compared with Rs 31,197 crore in the year-ago period.
With this, the bank has beaten the estimates as the analysts projected the Q4 net profit growth at around 68 per cent YoY. Its net interest income (NII) was expected to increase 25.8 per cent.
The bank’s board recommended a dividend of Rs 11.30 per equity share for FY23. It will be paid on June 14, 2023, according to a regulatory filing.
For the full financial year 2022-23, the state-owned bank’s net profit surged 59 per cent to Rs 50,232.45 crore.
SBI’s asset quality saw an improvement during the March 2023 quarter. Its gross non-performing assets (GNPA) declined 7.5 per cent to Rs 90,927.8 crore from Rs 98.347 crore in the previous quarter of October-December 2022. The lender’s net NPA fell 8.6 per cent to Rs 21,466.6 crore, against Rs 23,484 crore in the preceding quarter.
The bank’s gross NPA ratio during January-March 2023 fell to 2.78 per cent, compared with 3.14 per cent a quarter ago. Its net NPA ratio also dropped to 0.67 per cent from 0.77 per cent in the December 2022 quarter.
Provisioning for bad loans and contingencies nearly halved to Rs 3,315.71 crore during the quarter, as against Rs 7,237.45 crore in the January-March period of 2021-22.
Its return on assets (ROA) and return on equity (ROE) for FY23 stood at 0.96 per cent and 19.43 per cent, respectively. ROA at 1.23 per cent for the quarter improved by 49 bps YoY.
Domestic net interest margin (NIM) for Q4FY23 increased by 44 basis points YoY to 3.84 per cent.
At 2.22 pm on Thursday, SBI’s shares were trading down by Rs 8.10 or 1.38 per cent to Rs 578.40 apiece on the BSE.
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