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State
Bank of India conducted a conference call 04 August 2023 to discuss the
financial results for the quarter ended June 2023. Dinesh Kumar Khara, Chairman
of the bank addressed the call:
Highlights:
For the fourth straight quarter,
the bank has continued to post record high net profit in Q1FY2024.
The net profit has touched record
high in Q1FY2024, despite the first quarter has disadvantages over fourth
quarter.
The bank has recorded 15% growth
advances and 12% growth in deposit end June 2023.
The asset quality continues
to be well with gross NPAs at 10 year low of 2.76% and net NPAs at 0.71% end
June 2023.
The fresh slippages ratio declined
by 44 bps yoy to 0.94% and credit cost has declined by 29 bps to 32 bps in Q1FY2024.
The restructured loan book
of the bank was stable at Rs 22666 crore with healthy provisioning of 30%.
The current capital position
of the bank is sufficient to fund Rs 7 lakh crore of credit growth.
Excess SLR investment stands
at Rs 4 lakh crore end June 2023.
The rural segment credit growth
is 12-13% which used to be stagnant earlier and the bank is the mindful of the asset
quality in the rural book. The NPAs is in the rural book have been reduced to
11% from 15% earlier and the bank aims to reduce it into single digit by end
March 2024.
The segment wise fresh
slippages for the retail segments were at Rs 1400 crore, agriculture Rs 2300
crore and MSME Rs 2400 crore. Total slippages were at Rs 7659 crore in Q1FY2024,
of which the bank has pulled back Rs
1500 crore in July 2023.
Within the express credit, the
salaries segment accounts for 94% and it is mostly to the government employees
and only 4-5% comes from corporate which are well rated.
The share of floating rate
loan book stands at 74% and the fixed rate is at 26%.
The provisions for wage revision
is at Rs 500 crore month from the November 2022.
Every month Rs 1.2-1.4 lakh
crores of deposits reprices.
Bank is expecting loan
growth at 14-15% for FY2024.
As per the bank, currently
there are no plans of listings of SBI mutual fund.
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