India’s largest bank, State Bank of India (SBI), has announced its financial results for the quarter ended March, showcasing a remarkable 83% growth in standalone net profit. The bank’s net profit for the quarter reached Rs 16,695 crore, compared to Rs 9,113 crore during the same period last year. The results surpassed expectations, with both net profit and net interest income (NII) exceeding the estimates of analysts. SBI’s net interest income for the fourth quarter rose by 29% to Rs 40,393 crore, compared to Rs 31,198 crore in the corresponding quarter of the previous year. Additionally, provisions (other than tax) and contingencies decreased significantly by 54% to Rs 3,316 crore for the quarter under review, compared to Rs 7,237 crore in the same period last year.
The bank also slashed its provisions for non-performing assets (NPAs) by more than half to Rs 1,278 crore during the January-March period. The bank’s asset quality showed improvement, with the gross NPA ratio decreasing to 2.78% as of the March quarter, down from 3.14% in the December quarter and 3.97% in the March quarter of the previous year. The net NPA ratio also improved to 0.67% in the fourth quarter, compared to 0.77% in the third quarter and 1.08% in the same quarter last year. SBI’s operating profit for the March quarter witnessed a 25% year-on-year increase, reaching Rs 24,621 crore. The domestic net interest margin (NIM) rose by 44 basis points to 3.84% during the quarter.
The bank’s credit growth for the fiscal year ending in March 2023 stood at 16%, with corporate loans growing by 12% year-on-year and retail personal loans increasing by 18% year-on-year. Deposits also witnessed a substantial rise of 9% year-on-year, reaching Rs 44.23 lakh crore by the end of the March quarter. For the full fiscal year, SBI achieved a net profit of over Rs 50,000 crore, marking a growth of 58% compared to the previous year. The net interest income for the full year rose by 20% year-on-year, while the operating profit increased by 11% to Rs 83,713 crore. SBI’s strong performance, characterized by impressive profit growth, improved asset quality, and steady credit expansion, positions the bank as a leading player in India’s banking sector.