State Bank of India (SBI) logged its highest-ever quarterly net profit that climbed nearly 25% year-on-year in the three months to December, with the bottom line at the country’s largest lender by assets aided by one-time gains from SBI Mutual Fund dividends and foreign exchange benefits. The lender's asset quality improved in the period under review.
Net profit for the quarter came in at₹ 21,028 crore, including the one-time dividend gains in excess of ₹2,400 crore and forex gains of ₹1,500 crore. The bank had recorded a profit of₹ 16,891 crore in the corresponding quarter last year.
Net interest income (NII) rose 9% to ₹45,190 crore during the quarter, compared with ₹41,446 crore a year ago. Net interest margin (NIM), or core profitability, declined 3 basis points year-on-year to 3.12% from 3.15%.
One basis point is a hundredth of a percentage point.
“Profit growth has come from multiple levers, including fee-based income, recoveries and upgraded accounts, and net interest income, which grew at 9%,” said CS Setty, Chairman, State Bank of India.
“Operating income has increased while operating expenses have moderated. In addition, we received a one-time special dividend from SBI Mutual Fund.” Loan loss provisions rose 39.51% year-on-year to ₹3,216 crore for the quarter under review, compared with ₹2,305 crore in the same period last year.
The gross non-performing asset ratio improved by 50 basis points year-on-year to 1.57% from 2.07%. Fresh slippages stood at ₹4,458 crore, compared with ₹4,222 crore a year ago. Gross advances grew 15.14% year-on-year to ₹46.83 lakh crore. Retail loans rose 14.95% to ₹16.63 lakh crore and corporate loans by 13.37% to ₹13.33 lakh crore. SBI revised its credit growth guidance upward to 13-15%.
“Retail, agriculture and MSME (RAM) will be a big lever. Most of the growth, including in the current quarter, is coming from this segment,” Setty said.
SBI expects to maintain double-digit growth in its corporate loan book. “We are positioning ourselves to meet credit requirements of both SMEs and corporates,” he added. “Plus, benefits of all the trade deals will also flow in.”
The bank’s corporate loan pipeline stands at around ₹8 lakh crore, with ₹3.5 lakh crore disbursed and the remaining ₹4.5 lakh crore under sanctioned limits.
Total deposits grew 9.02% on-year to ₹57 lakh crore. Retail term deposits recorded strong growth of 14.54%, while current account deposits increased 10.32%. CASA deposits rose 8.88%, with the CASA ratio at 39.13%. The credit-deposit ratio stood at 72%.
“There is a structural shift taking place in financial savings, and we need to relook at our balance sheet composition. If household savings are moving into pension funds, mutual funds and insurance, these entities will also have to channel funds into the real economy,” Setty said.
Net profit for the quarter came in at₹ 21,028 crore, including the one-time dividend gains in excess of ₹2,400 crore and forex gains of ₹1,500 crore. The bank had recorded a profit of₹ 16,891 crore in the corresponding quarter last year.
Net interest income (NII) rose 9% to ₹45,190 crore during the quarter, compared with ₹41,446 crore a year ago. Net interest margin (NIM), or core profitability, declined 3 basis points year-on-year to 3.12% from 3.15%.
One basis point is a hundredth of a percentage point.
“Profit growth has come from multiple levers, including fee-based income, recoveries and upgraded accounts, and net interest income, which grew at 9%,” said CS Setty, Chairman, State Bank of India.
“Operating income has increased while operating expenses have moderated. In addition, we received a one-time special dividend from SBI Mutual Fund.” Loan loss provisions rose 39.51% year-on-year to ₹3,216 crore for the quarter under review, compared with ₹2,305 crore in the same period last year.
The gross non-performing asset ratio improved by 50 basis points year-on-year to 1.57% from 2.07%. Fresh slippages stood at ₹4,458 crore, compared with ₹4,222 crore a year ago. Gross advances grew 15.14% year-on-year to ₹46.83 lakh crore. Retail loans rose 14.95% to ₹16.63 lakh crore and corporate loans by 13.37% to ₹13.33 lakh crore. SBI revised its credit growth guidance upward to 13-15%.
“Retail, agriculture and MSME (RAM) will be a big lever. Most of the growth, including in the current quarter, is coming from this segment,” Setty said.
SBI expects to maintain double-digit growth in its corporate loan book. “We are positioning ourselves to meet credit requirements of both SMEs and corporates,” he added. “Plus, benefits of all the trade deals will also flow in.”
The bank’s corporate loan pipeline stands at around ₹8 lakh crore, with ₹3.5 lakh crore disbursed and the remaining ₹4.5 lakh crore under sanctioned limits.
Total deposits grew 9.02% on-year to ₹57 lakh crore. Retail term deposits recorded strong growth of 14.54%, while current account deposits increased 10.32%. CASA deposits rose 8.88%, with the CASA ratio at 39.13%. The credit-deposit ratio stood at 72%.
“There is a structural shift taking place in financial savings, and we need to relook at our balance sheet composition. If household savings are moving into pension funds, mutual funds and insurance, these entities will also have to channel funds into the real economy,” Setty said.
(This story has not been edited by economictimes.com and is auto–generated from a syndicated feed we subscribe to.)
