|
State
Bank of India has reported 178% growth in net profit to
record high level of Rs 16884.29 crore for the quarter ended June 2023
(Q1FY2024). The bank has posted healthy 25% growth in net interest income
(NII), while the core fee income of the bank also improved 4% in Q1FY2024. The
Net Interest Margin (NIM) of the bank improved to 3.33% in Q1FY2024 compared to
3.02% in the corresponding quarter of previous year.
On
business front, the bank as has posted 13% growth in business with strong 14% surge
in loan book. The asset quality of the bank was stable in Q1FY2024. Bank has
substantially improved the credit to deposit ratio to 72.9% at end June 2023
from 71.7% at end June 2022. However, the CASA ratio of the bank has declined
to 41.2% at end June 2023 from 43.7% at end June 2022.
Asset
quality stable: The bank has maintained stable asset quality in Q1FY2024.
The fresh
slippages of loans stood at Rs 7872 crore in Q1FY2024 compared with 3458 crore
in previous quarter and Rs 10115 crore in the corresponding quarter last year.
The
recoveries and upgradations of NPAs stood at Rs 3607 crore and the write-off of
loans was at Rs 3865 crore in Q1FY2024.
The
standard restructured loan book of the bank stood at Rs 22666 crore end June
2023 compared to Rs 24302 crore a quarter ago.
Provision
coverage ratio was steady at 91.41% at end June 2023 compared to 91.91% a
quarter ago and 90.14% a year ago.
The
capital adequacy ratio of the bank stood at 14.6% with Tier I ratio at 12.0% at
end June 2023.
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Asset Quality Indicators: State Bank of India
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|
|
Jun-23
|
Mar-23
|
Dec-22
|
Sep-22
|
Jun-22
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
91327.84
|
90927.78
|
98346.50
|
106804.14
|
113271.72
|
0
|
-19
|
|
Net NPA (Rs Crore)
|
22995.37
|
21466.64
|
23484.31
|
23572.19
|
28257.92
|
7
|
-19
|
|
% Gross NPA
|
2.76
|
2.78
|
3.14
|
3.52
|
3.91
|
-2
|
-115
|
|
% Net NPA
|
0.71
|
0.67
|
0.77
|
0.80
|
1.00
|
4
|
-29
|
|
% PCR
|
91.41
|
91.91
|
91.52
|
91.54
|
90.14
|
-50
|
127
|
|
% CRAR - Basel III
|
14.56
|
14.68
|
13.27
|
13.51
|
13.43
|
-12
|
113
|
|
% CRAR - Tier I - Basel III
|
11.97
|
12.06
|
10.80
|
11.12
|
11.15
|
-9
|
82
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business
Highlights:
Healthy
business growth: The business of the bank has increased 13% YoY to Rs 7834968 crore
end June 2023, driven by 14% surge in advances to Rs 3303731 crore. Deposits
rose 12% to Rs 4531237 crore at end June 2023.
CASA
deposits ratio declines: The CASA deposits of the bank rose 6% YoY to
Rs 1866059 crore at end June 2023. The current account deposits increased 7% to
Rs 258232 crore, while saving account deposits rose 5% to Rs 1607827 crore end
June 2023. The CASA ratio declined to 41.2% at end June 2023 compared to 43.7% at
end June 2022, while declined from 42.1% a quarter ago. The term deposits have
increased 12% to Rs 2486168 crore end June 2023.
Strong
loan growth: Advances growth was driven by retail loans rising 16% YoY to Rs 1204279
crore at end June 2023, while credit to agriculture increased 15% to Rs 264052 crore
and MSME 18% to Rs 369917 crore at end June 2023. The corporate credit has moved
up 12% to Rs 982184 crore end June 2023. The overseas credit has rose 7% to Rs 483299
crore end June 2023.
Investment
book of the bank rose 2% YoY to Rs 1524427 crore at end June 2023. The AFS book
dipped 12% to Rs 555903 crore, while HTM book rose 12% to Rs 966238 crore at
end June 2023. The duration of the AFS investment portfolio stood at 1.98 years
end June 2023 compared with 2.08 years at end June 2022.
Margins
improve: The bank has showed 75 bps YoY jump in cost of deposits to 4.55%, while
yield on advances increased 135 bps YoY to 8.78% in Q1FY2024. Thus, the NIM has
improved 92 bps YoY to 2.24%.
Book
value of the bank stood at Rs 354.8 per share at end June 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 322.7
per share at end June 2023.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 32% increase in the interest earned at Rs 95975.45
crore, while interest expenses increased 38% to Rs 57070.50 crore in Q1FY2024. NII
improved 25% to Rs 38904.95 crore in the quarter ended June 2023.
Healthy
growth in the core fee income: Bank has posted strong 4% growth
in core fee income to Rs 6625 crore, while the treasury income rebounded to Rs 3847
crore leading to 422% jump in the overall non-interest income to Rs 12063.38 crore
in the quarter ended June 2023. The forex income dipped 73% to Rs 540 crore.
Expenses
ratio improves: The operating expenses of the bank increased 24% to Rs 25671.40 crore,
as other expenses moved up 4% to Rs 9070.73 crore, while employee expenses
increased 38% to Rs 16600.67 crore in Q1FY2024. Cost to income ratio dipped to 50.4%
in Q1FY2024 compared with 61.9% in Q1FY2023, helping the Operating Profit to
increase 25% to Rs 25296.93 crore.
Provisions
and contingencies decline: The bank has showed 54% decline in provisions
to Rs 2501.31 crore. The loan loss provisions declined 38% to Rs 2652 crore and
investment provisions fell 99% to Rs 14 crore, while the bank has written back standard
asset provisions of Rs 433 crore. The other provisions rebounded to Rs 268 crore.
Effective
tax rate declined to 25.9% in
Q1FY2024 from 27.4% in Q1FY2023. Net Profit rose by 83% YoY to Rs 16884.29 crore
during quarter ended June 2023.
Standalone
Financial Performance FY2023:
For the
year ended March 2023 (FY2023), Bank posted 59% increase in net profit to Rs
50232.46 crore. The net interest income improved 20% to Rs 144840.51 crore,
while non-interest income declined 10% to Rs 36615.60 crore in FY2023. The
expense ratio rose 55 bps yoy to 53.9% in FY2023. The operating expenses rose
14% to Rs 97743.13 crore, while provision and contingencies dipped 32% to Rs
16507.33 crore in FY2023. The profit before tax improved 32% to Rs 67205.65
crore in FY2023. The effective tax rate declined 179 bps yoy to 25.3%. Net
profit moved up 59% to Rs 50232.46 crore in FY2023.
Consolidated
quarterly performance:
On the consolidated
front, the bank has posted 153% increase in the net profit at Rs 18536.80 crore
over 25% rise in NII at Rs 43415.07 crore. The other income increased 74% to Rs
30872.77 crore, leading to 41% rise in net total income to Rs 74287.84 crore.
The operating expenses rose 22% to Rs 45979.63 crore, allowing the operating
profit to increase 88% to Rs 28308.21 crore in the quarter ended June 2023. The
provisions declined 35% to Rs 3100.57 crore. PBT surged 146% to Rs 25207.64
crore in Q1FY2024. The effective tax rate eased to 25.3% in Q1FY2024 from 26.0%
in Q1FY2023, allowing the net profit to move up 145% to Rs 19094.34 crore
before minority interest and share of associates. The Minority interest
increased 18% to Rs 557.54 crore, while the profit from associate companies
moved up 34% to Rs 358.39 crore. Net Profit increased 153% to Rs 18536.80 crore
for quarter ended June 2023.
Consolidated
Financial Performance FY2023:
For the
year ended March 2023 (FY2023), Bank on consolidated basis has posted 57%
increase in net profit to Rs 55648.18 crore. The net interest income improved
20% to Rs 160863.77 crore, while non-interest income rose 5% to Rs 122533.56
crore in FY2023. The expense ratio rose 41 bps yoy to 67.0% in FY2023. The
operating expenses increased 14% to Rs 189814.48 crore, while provision and
contingencies increased dipped 32% to Rs 18184.28 crore in FY2023. The profit
before tax improved 32% to Rs 75398.57 crore in FY2023. The effective tax rate
declined 187 bps yoy to 24.6%. Net profit advanced 57% to Rs 55648.18 crore in
FY2023.
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State
Bank of India: Results
|
|
Particulars
|
2306
(3)
|
2206
(3)
|
Var %
|
2303
(12)
|
2203
(12)
|
Var %
|
|
Interest Earned
|
95975.45
|
72676.37
|
32
|
332103.06
|
275457.28
|
21
|
|
Interest Expended
|
57070.50
|
41480.44
|
38
|
187262.56
|
154749.70
|
21
|
|
Net Interest Income
|
38904.95
|
31195.93
|
25
|
144840.50
|
120707.58
|
20
|
|
Other Income
|
12063.38
|
2312.20
|
422
|
36615.60
|
40563.91
|
-10
|
|
Net Total Income
|
50968.33
|
33508.13
|
52
|
181456.10
|
161271.49
|
13
|
|
Operating Expenses
|
25671.40
|
20755.57
|
24
|
97743.13
|
85979.13
|
14
|
|
Operating Profits
|
25296.93
|
12752.56
|
98
|
83712.97
|
75292.36
|
11
|
|
Provisions & Contingencies
|
2501.31
|
4392.38
|
-43
|
16507.33
|
24452.13
|
-32
|
|
Profit Before Tax
|
22795.62
|
8360.18
|
173
|
67205.64
|
50840.23
|
32
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
-7418.39
|
-
|
|
PBT after EO
|
22795.62
|
8360.18
|
173
|
67205.64
|
43421.84
|
55
|
|
Provision for tax
|
5911.33
|
2292.10
|
158
|
16973.19
|
11745.87
|
45
|
|
PAT
|
16884.29
|
6068.08
|
178
|
50232.45
|
31675.97
|
59
|
|
EPS*(Rs)
|
75.7
|
27.2
|
|
56.3
|
41.6
|
|
|
Adj BV (Rs)
|
322.7
|
260.6
|
|
305.1
|
247.6
|
|
|
*
Annualized on current equity of Rs 892.46 crore. Face Value: Re 1, Figures in
Rs crore
|
|
Source:
Capitaline Corporate Database
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State Bank of India: Consolidated Results
|
|
Particulars
|
2306
(3)
|
2206
(3)
|
Var %
|
2303
(12)
|
2203
(12)
|
Var %
|
|
Interest Earned
|
101460.01
|
76780.86
|
32
|
350844.58
|
289972.69
|
21
|
|
Interest Expended
|
58044.94
|
41931.16
|
38
|
189980.81
|
156194.34
|
22
|
|
Net Interest Income
|
43415.07
|
34849.70
|
25
|
160863.77
|
133778.35
|
20
|
|
Other Income
|
30872.77
|
17743.44
|
74
|
122533.56
|
117000.40
|
5
|
|
Net Total Income
|
74287.84
|
52593.14
|
41
|
283397.33
|
250778.75
|
13
|
|
Operating Expenses
|
45979.63
|
37565.55
|
22
|
189814.48
|
166945.04
|
14
|
|
Operating Profits
|
28308.21
|
15027.59
|
88
|
93582.85
|
83833.71
|
12
|
|
Provisions & Contingencies
|
3100.57
|
4762.48
|
-35
|
18184.28
|
26676.69
|
-32
|
|
PBT
|
25207.64
|
10265.11
|
146
|
75398.57
|
57157.02
|
32
|
|
P&L of Associate Company
|
358.39
|
267.98
|
34
|
1191.45
|
827.01
|
44
|
|
PBT before EO
|
25566.03
|
10533.09
|
143
|
76590.02
|
57984.03
|
32
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
-7418.39
|
-
|
|
PBT after EO
|
25566.03
|
10533.09
|
143
|
76590.02
|
50565.64
|
51
|
|
Provisions for tax
|
6471.69
|
2736.86
|
136
|
18840.13
|
13382.46
|
41
|
|
Net Profit before minority interest
|
19094.34
|
7796.23
|
145
|
57749.89
|
37183.18
|
55
|
|
Minority Interest
|
557.54
|
471.12
|
18
|
2101.71
|
1809.30
|
16
|
|
Net profit
|
18536.80
|
7325.11
|
153
|
55648.18
|
35373.88
|
57
|
|
EPS*(Rs)
|
83.1
|
32.8
|
|
62.4
|
45.7
|
|
|
Adj BV (Rs)
|
359.9
|
290.4
|
|
340.2
|
276.2
|
|
|
* Annualized on current equity of Rs 892.46 crore. Face Value:
Rs 1, Figures in Rs crore,
|
|
Source: Capitaline Corporate Database
|
|