SBI Q1 net profit down 6.7% at Rs6,068.1 crore
08 August 2022
State Bank of India (SBI) on Saturday reported a 6.7 per cent year-on-year decline in its net profit for fiscal first quarter ended 30 June 2022 to Rs6,068.1 crore, against Rs6,504 crore in the year-ago quarter.
SBI, the country’s largest commercial bank, said its net interest income increased to Rs31,196 crore in Q1FY23 from Rs27,638 crore in Q1FY22 , logging a near 12.87 per cent rise on YoY basis.
Operating profit during the quarter was lower at Rs12,753 crore, down 32.8 per cent year-on -year and 35.3 per cent quarter over quarter. Profit was hit by mark-to-market losses on the bank's investment book, which also had an impact on its return on assets and return on equity, SBI stated in a regulatory filing.
Other income during the quarter stood at Rs2,312 crore., while cost to income ratio rose to 61.94 per cent against 51.89 per cent a year ago and 54.23 per cent in the previous quarter.
The lender's gross and net NPAs were up at 1 per cent each at Rs1.13 lakh crore and Rs28,257.9 crore, respectively. Provisions came in at Rs4,392 crore, down 56.3 per cent YOY and 39.3 per cent QOQ.
Slippage ratio of SBI for Q1FY23 stands at 1.38 per cent, which is 1.09 per cent better in YoY terms. Credit cost of the state-run lender for Q1FY23 stands at 0.61 per cent, around 18 bps better than its Credit cost for Q1FY22.
SBI has reported YoY credit growth to the tune of 14.93 per cent. Its Domestic Advances grew at 13.66 per cent YoY and Foreign Offices’ Advances grew by 22.39 per cent YoY.
SBI's domestic advances growth is mainly driven by retail personal loans (18.58 per cent YoY), out of which home loans grew 13.77 per cent YoY. Corporate loan book of the PSU bank grew by 10.57 per cent. SME and Agri loans have also registered YoY growth of 10.01 per cent and 9.82 per cent respectively.
“Bank’s balance sheet size crosses Rs50 lakh crore," SBI said, adding, “Capital Adequacy Ratio (CAR) as at the end of Q1FY23 stands at 13.43 per cent."
On earnings, SBI's chairman Dinesh Kumar Khara said that large part of quarter remained dominated by concerns about inflation and exchange rates.
"Our subsidiaries continue to create significant value for customers and shareholders," he said.
SBI share price has risen 11 per cent in the last one month and is now close to its 52-week high. On Friday, SBI share price ended at Rs532 per share.