SBI Reports 14% Net Profit Increase in Q2 to ₹23,038 Crore
State Bank of India announced a 14% increase in net profit for Q2, reaching ₹23,038 crore, boosted by loan growth and a one-time gain.
MUMBAI, Nov 4: State Bank of India (SBI) reported a net profit of ₹23,038 crore for the second quarter ending September 30, 2023, representing a 14.28% increase year-on-year. This growth was fuelled by lower loan-loss provisions and stronger asset quality.
Net interest income (NII) also rose, climbing 14.69% to ₹49,143 crore, while the net interest margin (NIM) improved slightly to 3.11% from 3.08% a year ago. SBI’s loan-loss provisions decreased by 33.23%, falling to ₹2,759 crore.
The bank’s gross non-performing assets (GNPA) amounted to ₹72,529 crore, down 4.87%, resulting in a GNPA ratio of 1.39%. However, the net non-performing assets (NNPA) saw a slight rise of 0.47% to ₹18,546 crore, although the NNPA ratio fell to 0.36%.
SBI experienced significant growth in its loan book, which increased by 17.84% year-on-year to ₹52.08 lakh crore. Domestic corporate advances rose 16.12% to ₹14.39 lakh crore, and retail loans grew by 14.54% to ₹18.25 lakh crore, with home loans contributing ₹9.86 lakh crore, an increase of 11.94%.
SBI Chairman C.S. Setty noted, “The Indian economy continues to offer strong growth opportunities and SBI is well positioned to participate in this journey.” He emphasized the bank’s focus on building deposit franchises and enhancing cybersecurity strategies.
In a statement regarding the increase in NIM, Setty explained that improved liability management and a reduction in the cost of deposits had been crucial. He also mentioned the potential impact of future monetary policy changes on their NIM, suggesting they aim to maintain rates above 3%.
The reported profit included a one-time exceptional gain of ₹72.9 billion from the sale of shares in SBI Funds Management Ltd. This transaction was part of a strategic partnership with France’s Amundi SA.
As India’s credit growth accelerates amid the festive season, SBI’s loan growth has outpaced expectations, solidifying its standing as the country’s largest lender.
Sources
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.