SBI Q2FY23
SBI Q2FY23 net profit soars 74 pc YOY to Rs 13,265 crore
India's largest lender State Bank of India (SBI) reported a 74 percent year-on-year (Y-O-Y) jump in Q2Fy23 net profit to Rs 13,265 crore compared to Rs 7,627 crore in Q2FY22.
Its net interest income (interest earned less interest expended) improved 12.83 percent YoY to Rs 35,183 crore for Q2FY23, while in the year-ago period it was Rs 31,184 crore.
On a sequential basis, it increased 12.78 percent, from Rs 31,196 crore in Q1FY23.
Net Interest Margin (NIM) in domestic operations improved 3.55 percent in Q2FY23, against 3.50 percent a year ago.
NIM is usually expressed as a percentage of what the financial institution earns on loans in a time period and other assets minus the interest paid on borrowed funds divided by the average amount of the assets on which it earned income in that time period.
It improved 5 basis points on a sequential basis, from 3.23 percent in Q1FY23. One basis point is one-hundredth of a percentage point or 0.01
A positive net interest margin reflects that the bank is efficiently investing.
The bank said that it has registered growth in retail as well as corporate segments, indicating business in busy season.
Its base effect in Corporate Advances rose by 21.18 percent YoY followed by Retail Personal Advances which grew by 18.84 percent YoY.
The overall growth in credit is expected to be 14-16 percent, up from the 10-12 percent guidance given at the start of FY23.
Deposits expanded 9.99 percent YoY, from Rs 38.09 trillion in Q2FY22 to Rs 41.9 trillion in Q2FY23.
The deposit book grew from a base of Rs 40.45 trillion in June 2022.
Its asset quality profile improved, with gross non-performing assets (NPAs) coming down to 3.52 percent in Q2FY23, from 4.9 percent a year ago.
GNPAs stood at 3.91 percent in June 2022 (Q1FY23).
The net NPA ratio shrank to 0.80 percent at the end of Q2FY23, from 1.52 percent a year ago and 1.0 percent in Q1FY23.
The provision coverage ratio for bad loans stood at 91.54 percent in Q2FY23, compared 87.68 percent a year ago and 90.14 percent in Q1FY23.
In the quarter ended September 30, 2022, the bank’s total capital adequacy ratio was at 13.51 percent in Q2FY23, against 13.35 percent a year ago and 13.43 percent in Q1FY23.
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