SBI Reports Its Highest-Ever Quarterly Profit Of 16.884 Billion Rupees
One of India’s main public sector banks, State Bank of India (SBI), released its financial results for the April–June 2023–2024 quarter. A huge increase from the bank’s lowest-ever quarterly profit of 6,068 crore to its highest-ever quarterly profit of 16,884 crore.
An increase in interest income and a decrease in problematic loans were credited for this outstanding result. On a consolidated basis, SBI’s net income increased significantly, more than doubling to 18,537 crore from 7,325 crore the previous year. Nevertheless, despite the excellent results, the bank’s shares fell by close to 3% as a result of a few sequential indications that showed a slight dip.
In Q1 2023–24, SBI posted a net profit of 16,884 crore, more than tripling its 6,068 crore profit from the same period the previous year.
The bank’s net income increased dramatically from $7,325 crore a year earlier to 18,537 crore on a consolidated basis.
SBI’s total revenue for the first quarter was $1,32,333 crore, up from $94,524 crore during the same time last year.
Sequentially, loan loss provisions more than quadrupled, margins showed a small deterioration, and net interest income decreased. As a result, SBI shares fell by over 3% on the stock market.
Dinesh Khare, the chairman, emphasised the need of using annualised data rather than sequential data, particularly in the first quarter. According to him, the first quarter is special for banks since many of them delay pay-outs or pay-ins until the final quarter of the fiscal year.
With a noteworthy decrease in the slippage ratio, SBI greatly enhanced the quality of its assets, especially in the retail, SME, and agro books. Gross non-performing assets (NPA) decreased from 3.91 percent to 2.76 percent during the past year.
The bank’s credit growth was 13.90%, while domestic advances increased by 15.08% to 33,03,731 crore. SME, retail, and personal advancements, as well as the development in domestic advances, were the main factors.
