State Bank of India’s Q4 results showed an 83 percent increase in net profit to Rs 16,694 crore for the three months that ended on March 31, 2023.
State Bank of India (SBI), the largest public sector lender in the nation, on May 18 declared its highest-ever quarterly net profit of Rs 16,694 crore for the financial year 2022–23’s March quarter, an increase of 83 percent over the same quarter the previous year.
1 Profit growth
The public-sector lender’s net profit increased by 83 percent year over year (YoY) to Rs 16,694 crore from Rs 9,113 crore in the same quarter of the prior fiscal year.
SBI made a profit of Rs 50,232 crore during the year, up from Rs 31,675 crore in 2021–2022. The bank has now made its highest-ever quarterly and annual profits.
The difference between interest earned and spent, or net interest income (NII), increased by 29.5 percent to Rs 40,392 crore from Rs 31,197 crore in the previous fiscal year.
2 An increase in asset quality
Gross non-performing assets (GNPA) for SBI fell from Rs 1.12 lakh crore in FY22 to Rs 90,027 crore in FY23.
The GNPA ratio decreased from 3.97 percent in the prior quarter to 2.78 percent during the fourth quarter. The bank has not had a lower GNPA ratio in ten years.
From Rs 27,965 crore and the NNPA, Net NPA decreased to Rs 21,466 crore in the March quarter.
3 Segment Expansion
The bank’s treasury sector income increased from Rs 24,098 crore to Rs 28,470 crore in the March quarter.
Corporate and wholesale banking activities for the firm increased to Rs 29,505 crores on a year-over-year basis from Rs 19,825 crores.
Digital banking is included in retail banking, which increased from Rs 38,075 crore to Rs 48,091 crore.
The share’s NSE (National Stock Exchange) price was Rs 578.45 at 2.23 p.m., down 1.34 percent from the previous close.
4 Deposit Expansion
Deposits at the lender increased by 9.19% YoY, with current account and savings account (CASA) deposits growing by 4.95% YoY.
As of March 31, 2023, the CASA ratio was 43.80%.
