The State Bank of India (SBI), the country's largest public-sector lender, has revealed strong fourth-quarter financial performance for the period ending March 31, 2023. The bank’s net profit witnessed a significant surge of 83 percent, reaching a record high of Rs 16,694 crore.
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Here are the key highlights from SBI’s earnings report card
1. Rise in Profit: SBI recorded a remarkable 83 percent year-on-year (YoY) increase in net profit, surpassing market estimates. The bank's net profit increased from Rs 9,113 crore in the previous fiscal year's corresponding quarter to Rs 16,694 crore this year. Furthermore, SBI earned Rs 50,232 crore in profit for the fiscal year 2022-23, a significant increase from Rs 31,675 crore in 2021-22. This is SBI's biggest quarterly and annual profit.
2. Net Interest Income (NII) Growth: The bank witnessed a significant growth in net interest income, which is the difference between interest earned and spent. The NII for the quarter rose by 29.5 percent to Rs 40,392 crore, compared to Rs 31,197 crore in the previous fiscal year.
3. Improvement in Asset Quality: During the fiscal year 2022-23, SBI demonstrated a significant improvement in asset quality. The bank's gross non-performing assets (GNPA) fell from Rs 1.12 lakh crore to Rs 90,027 crore in the previous year. The GNPA ratio for the fourth quarter decreased to 2.78 percent from 3.97 percent in the year-ago period, marking the lowest GNPA ratio for the bank in a decade. Moreover, net non-performing assets (NNPA) decreased to Rs 21,466 crore in the March quarter, down from Rs 27,965 crore, and the NNPA ratio slipped to 0.67 percent from 1.02 percent in the year-ago period.
4. Segment Growth: SBI had growth in multiple segments in the March quarter. Treasury segment revenue climbed to Rs 28,470 crore, up from Rs 24,098 crore the previous year. Corporate and wholesale banking operations grew as well, hitting Rs 29,505 crore from Rs 19,825 crore year on year. The retail banking segment, which includes digital banking, exhibited significant growth, with revenue rising to Rs 48,091 crore compared to Rs 38,075 crore in the previous year.
5. Deposit Growth: SBI’s deposits experienced a healthy YoY growth of 9.19 percent. Notably, current account and savings account (CASA) deposits grew by 4.95 percent YoY. As of March 31, 2023, the CASA ratio stood at 43.80 percent.
