SBI Q2 net profit at decade high of Rs12,265 crore

State Bank of India (SBI) has reported a 73.9 per cent year-on-year (YoY) jump in its net profit to Rs13,265 crore for fiscal second quarter ended 30 September. This was aided by a 12.8 per cent increase in the bank’s net interest income (NII) to Rs35,183 crore. 

The bank’s operating profit expanded 17 per cent to Rs21,120 crore, on the back of a 20 per cent rise in advances, at Rs30,35,071 crore in the September quarter.
The country’s largest lender said its total income increased to Rs88,734 crore during the quarter from Rs77,689.09 crore a year ago.
Dinesh Khara, chairman, SBI, said it was one of the busiest quarters the bank has witnessed in terms of loan disbursals, adding that he expected loan growth in FY23 to be around 14–16 per cent. This is a significant increase from the earlier estimates of 10–12 per cent.
Also, for the first time in many quarters, the bank saw its corporate advances grow faster than its retail book (including agri-loans and loans to small and medium enterprises) at 21 per cent year-on-year to Rs9,17,016 crore. Growth in the retail loan book at Rs10,74,853 crore, up 19 per cent year-on-year.
SBI also reported a decline in its gross non-performing assets (NPA) to 4 per cent or Rs1,06,804 crore and net NPA at 0.8 per cent or Rs23,572 crore, the lowest for a decade. Slippages or accounts which turned bad during the quarter nearly halved to Rs2,399 crore, while credit cost eased to 0.28 per cent in Q2. 
Provisioning during the quarter was down 25 per cent at Rs2,011 crore, helped by an improvement in asset quality and robust loan growth. This, in turn, took bank’s return on assets and return on equity to 20-year highs of 0.76 per cent and 16 per cent, respectively. 
The bank’s capital adequacy ratio stood at 14 per cent and its common tier-1 capital at 10 per cent in Q2.