On the strength of stronger core income and reduced provision, the State Bank of India, the largest
lender in India, saw an 83% increase in fourth-quarter net profit, exceeding analysts’ expectations.
For the quarter that ended in March, net profit increased from Rs. 9,114 crores to Rs. 16.694 Crore.
The 14,884 Crore rupee net profit was what analysts surveyed by Bloomberg were expecting. Core
income, also known as net interest income, increased by 29.5% to Rs. 40,393 Crore for the previous
year. The same is true for other income, which increased by 17.5% annually to Rs.13,916 Crore. The
gross non-performing asset ratio decreased by 36 basis points from quarter to 2.78%, indicating an
improvement in asset quality throughout the quarter to quarter. The Net NPA ratio is also down 10
basis points sequentially to 0.67%.
During the quarter, the bank added news slippages of Rs 3,185 crore. In contrast, it underwent
restoration and improvement of Rs 4,200 Crore. The quarter’s bad loan provisions decreased by 60%
from the prior year to Rs 1,278 Crore. Gross advances were up 16% year over year as of March 31 to
Rs 32.69 lakh crore. Domestic corporate credit increased by 12.52% to Rs.9.8 lakh crore, and
domestic retail credit increased by 17.64% year over year to Rs. 11.79 lakh crore.
“In FY24, we anticipate credit to expand by 12-14%. Retail will continue to grow, and SMEs are also
creating chances, according to SBI Chairman Dinesh Khara. On the corporate front, the bank is
benefiting greatly from the transportation and renewable energy industries. Over 1.7 trillion rupees
in loans have already been approved by the bank, and another 1.75 trillion rupees in loans are
pending approval. To reach Rs 44.23 lakh crore, outstanding deposits increased by 9.19% from a year
ago. Term deposits increased by 11.45% annually to reach Rs 23.9 lakh crore. Deposits in current
account savings accounts increased by 4.95% to Rs 18.63 lakh crore from a year ago. At the
conclusion of FY23, the bank’s CASA ratio decreased from 45.28% to 43.8%.
“We presently hold surplus securities of the statutory liquidity ratio of more than Rs 4 lakh crore.
Deposits won’t have an impact on the expansion of our credit, according to Khara. After the
earnings, SBI shares dropped as much as 1.4% in comparison to the nearly unchanged benchmark
Nifty 50. The total traded volume was double the 30-day average volume. According to Bloomberg
statistics, 47 of the 48 analysts following the stock recommend “buy”, while one continues to
recommend “hold”. The average price forecast over the next 12 months suggests a possible gain of
23.8%.