SBI Q4 results: State Bank of India (SBI), India’s largest state-owned bank, reported a standalone net profit of Rs 20,698.35 crore, up 24 percent year-on-year (Y-o-Y), on the back of higher interest income and low provisions.
The bank had reported a net profit of Rs 16,694.5 crore in the March quarter of the previous fiscal (Q4FY23).
The number beat analysts’ estimates by a wide margin, who had pegged PAT in the range of Rs 10,432 crore to Rs 14,743 crore. On the bourses, shares of SBI gained 3.6 percent in the intraday to hit a fresh record high of Rs 839.6 apiece. By comparison, the S&P BSE Sensex was down 1.2 percent at 2:40 PM.
State Bank of India
Sequentially, SBI’s net profit more-than-doubled, zooming 125 per cent from Rs 9,163.96 crore posted in the December quarter of FY24 (Q3FY24).
For the entire financial year, net profit came in at Rs 61,077 crore, witnessing a growth of 21.59 percent Y-o-Y after accounting for wage settlement and a one-time exceptional item of Rs 7,100 crore.
SBI Q4 NII, NIM
Meanwhile, operationally, the net interest income (NII) of SBI rose 3 per cent Y-o-Y to Rs 41,656 crore, up from Rs 40,392.5 crore posted in Q4FY23.
Net interest margin (NIM) rose unexpectedly to 3.30 percent from 3.22 percent Q-o-Q. It was 3.60 percent in Q4FY23.
Operating profit (before provisions and contingencies) came in at Rs 28,747 crore for the March quarter, up 16.7 percent from Rs 21,621 crore reported last year. In the December quarter, the operating profit was Rs 20,336 crore.
Operating profit for FY24 grew by 12.05 percent Y-o-Y to Rs 93,797 crore.
SBI Q4 dividend announcement
The Board of the Bank has declared a dividend of Rs 13.70 per equity share for the financial year ended 31.03.2024, The record date for determining the eligibility of shareholders, entitled to the dividend, has been fixed as Wednesday, May 22, 2024. The dividend payment date is fixed as June 5, 2024.
SBI Q4 asset quality and provisions
SBI’s total provisions for the March quarter declined to Rs 1,609.78 crore from Rs 3,315.7 crore in the year-ago period. These, however, increased sequentially from Rs 687.85 crore set aside in Q3FY24.
SBI reported slippages of Rs 3,984 crore, down from Rs 5,046 crore Q-o-Q.
Gross NPAs slipped marginally by 2.8 percent to Rs 84,276.3 crore from Rs 86,748.8 crore reported in Q3FY24. Every year, GNPA slipped from Rs 90,928 crore.
In percentage terms, the GNPA ratio improved to 2.24 percent in Q4FY24 vs 2.4 percent in Q3FY24 and 2.78 percent in Q4FY23.
Similarly, NNPAs, in absolute terms, declined to Rs 21,051 crore in Q4FY24 from Rs 21,467 crore Y-oY and Rs 22,408 crore Q-o-Q.
NNPA ratio, thus, came in at 0.57 percent in the quarter under study as against 0.67 percent Y-o-Y and 0.64 percent Q-o-Q.
Provision Coverage Ratio (PCR) stood at 75.02 percent at the end of FY24, with Slippage Ratio at 0.62 percent, and Credit Cost at 0.29 percent.
SBI Q4 loans and deposits
State Bank of India reported credit growth of 15.24 percent Y-o-Y at Rs 37.67 trillion, with domestic advances growing 16.26 percent Y-o-Y/5.1 percent Q-o-Q.
Corporate advances and agri-advances crossed Rs 1.1 trillion and Rs 3 trillion, respectively. Apart, Retail Personal Advances and Corporate loans registered Y-o-Y growth of 14.68 percent and 16.17 percent, respectively.
On the deposit side, total deposits came at Rs 49.16 trillion, up 11.13 percent Y-o-Y/3.23 percent Q-o-Q.
Whole Bank Deposits grew at 11.13 percent Y-o-Y, out of which CASA Deposit grew by 4.25 percent Y-o-Y. CASA ratio stood at 41.11 percent at the end of March 2024.
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