SBI's profit jumps 178% in Q1 to Rs. 16,884 crore
What's the story
State Bank of India (SBI) has posted a record net profit for the fourth consecutive quarter, with a 178.24% YoY increase to Rs. 16,884.29 crore in Q1 2023. The bank profit figure surpassed analysts' expectations of 120-160% growth. In the same quarter last year, its profit was Rs. 6,068.08 crore. SBI's net interest income rose 24.71% YoY to Rs. 38,905 crore.
Details
SBI's asset quality improved considerably YoY
SBI's asset quality has significantly improved over the past year, with the gross non-performing assets (NPAs) ratio down 115 basis points YoY at 2.76%. Provisions for NPAs for the quarter fell from Rs. 4,392.38 crore in the same quarter last year to Rs. 2,501.31 crore in Q1 2023. The bank's slippage ratio stood at 0.94%, compared to 1.38% in the year-ago quarter.
What Next?
SBI has been efficient in managing its interest income
Another highlight of SBI's quarterly report was the domestic net interest margin (DNIM). It reached 3.4% in the quarter, rising 24 basis points YoY. It indicates how efficiently the bank has been managing its interest income in the domestic market. SBI's first-quarter credit growth was also impressive. The bank's overall advances increased by 13.90% YoY.