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SBI Posts Highest-Ever Quarterly Profit Of ₹ 16,884 Crore

State Bank of India (SBI), one of India’s largest public sector banks, reported its financial results for the April-June quarter of 2023-24. The bank achieved its highest-ever quarterly profit at ₹ 16,884 crore, representing a significant jump from ₹ 6,068 crore in the same period the previous year.

This remarkable performance was attributed to a decline in bad loans and increased interest income. On a consolidated basis, SBI’s net income also saw substantial growth, rising more than two-fold to ₹ 18,537 crore compared to ₹ 7,325 crore a year ago. However, despite the outstanding results, the bank’s shares declined by nearly 3 per cent due to some sequential indicators showing marginal deterioration.

Key Highlights:

  1. Record Profit: SBI reported a net profit of ₹ 16,884 crore in Q1 2023-24, a nearly three-fold increase from ₹ 6,068 crore in the same quarter the previous year.

  2. Consolidated Net Income: The bank’s net income on a consolidated basis soared to ₹ 18,537 crore, marking a more than two-fold increase from ₹ 7,325 crore a year ago.
  3. Total Income: SBI’s total income in the first quarter stood at ₹ 1,32,333 crore, compared to ₹ 94,524 crore in the same period the previous year.
  4. Sequential Numbers: Sequentially, some key indicators such as margins and net interest income showed slight deterioration, and loan loss provisions more than doubled, leading to a decline of SBI shares by nearly 3 per cent on the stock market.
  5. Chairman’s Perspective: Chairman Dinesh Khare emphasized the importance of looking at annualized numbers rather than sequential numbers, especially in the first quarter. He explained that the first quarter is unique for banks, with many institutions holding back pay-outs or pay-ins until the last quarter of the fiscal year.
  6. Asset Quality Improvement: SBI significantly improved its asset quality, with a notable reduction in the slippage ratio, particularly in the agri, SME, and retail books. Gross non-performing assets (NPA) declined to 2.76 per cent, down from 3.91 per cent a year ago.
  7. Credit Growth: The bank’s credit growth stood at 13.90 per cent, with domestic advances growing 15.08 per cent to ₹ 33,03,731 crore. The growth in domestic advances was driven by SME advances and retail and personal advances.
  8. Deposit Growth: Overall deposits grew by 12 per cent to ₹ 45,31,237 crore, with low-cost Casa deposits growing by 5.57 per cent to ₹ 18,66,059 crore.
  9. Digital Acquisitions: SBI saw a significant increase in digital acquisitions, with 63 per cent of SB accounts and 35 per cent of retail asset accounts acquired digitally through Yono.
  10. Infusions and Plans: During the quarter, SBI infused ₹ 489.67 crore into its non-life insurance arm, SBI General Insurance, and ₹ 82.16 crore into eight regional rural banks. The bank ruled out reviving the shelved IPO plan for SBI General Insurance.
  11. Capital Adequacy: SBI’s capital adequacy ratio improved by 113 bps to 14.56.

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