The country’s largest lender, State Bank of India, announced on August 3 that it had hiked its net profit by about 1 percent at Rs 17,035.16 crore for the first quarter of the current financial year, which saw a marginal rise from last year’s Q1 when its net profit stood at Rs 16,884 crore.
Sequential Performance:
Sequentially, the net profit of SBI dropped by 17.7 percent.
Fund-Raising Approval:
The Central Board has approved the fund-raising to the tune of Rs 25,000 crore through the issuance of Basel III-compliant AT-I Bonds and Tier-II Bonds in the domestic and overseas markets during FY25.
Asset Quality:
The gross non-performing assets ratio stood at 2.21 per cent as of June 30, compared to 2.24 per cent as of March 31 and 2.76 per cent as of June 30, 2023.
Its net NPA ratio remained unchanged at 0.57 percent as of June 30, the same as the previous three months, and an improvement from 0.71 percent a year ago.
Gross NPAs, in absolute terms, stood at Rs 84,226.04 crore on June 30 against Rs 91,327.84 crore a year ago.
Provision Coverage Ratio is at 91.76 percent, while PCR stands at 74.41 percent with AUCA.
The slippage ratio improved 10 basis points year on year to 0.84 percent.
Credit Cost for Q1FY25 stood at 0.48 percent.
Deposits:
Deposits rose 8.18 percent year-on-year to Rs 49.02 lakh crore and fell marginally by 0.29 percent sequentially.
CASA or current account savings account for domestic deposits increased by 2.59 percent year-on-year to Rs 19.15 lakh crore.
Domestic term deposits increased by 12.20 per cent year-on-year to ₹27.9 lakh crore.
Its CASA ratio dropped to 40.70 per cent as of June 30 from 42.88 per cent a year ago and 41.11 per cent in the previous quarter.
Advances:
Gross advances increased 15.39 per cent year on year to Rs. 38,12 lakh crore, and sequential growth has come in at 1.18 per cent.
Domestic advances were driven by a 19.87 percent growth in SME advances and a 17.06 percent increase in agricultural advances.
Domestic corporate loans rose a shade to Rs 11.39 lakh crore as on September 30, from Rs 11.38 lakh crore a quarter ago and Rs 9.82 lakh crore a year ago. Yet, domestic retail personal loans continued their upward trend and rose 13.60 per cent year-on-year to Rs 13.68 lakh crore.
Net Interest Income (NII) and Net Interest Margin (NIM): NII stood at Rs 41,125 crore, up 5.71 percent year-on-year. NIM was down 11 basis points year-on-year at 3.22 percent as of June 30, but domestic NIM slipped 12 bps to 3.35 percent. Capital Adequacy Ratio (CAR) at the end of Q1FY25 was 13.86 percent. This performance has been on the back of SBI’s robust asset quality management and also strategic initiatives in the fund-raising area, coupled with expansion of advances, amidst challenges in the economic environment.
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Source: Moneycontrol
News Desk
