SBI Q1FY24 profit jumps 178% YoY to Rs 16,884 cr; NII surges 25%

This marks the fourth consecutive quarter of achieving the highest-ever net profit for SBI.

During the Q1FY24 period, SBI's net interest income (NII) witnessed a robust YoY increase of 24.7%, reaching Rs 38,905 crore. Additionally, the domestic net interest margin saw a 24 basis points YoY rise, reaching 3.47%.

The state-owned bank's gross non-performing assets (NPAs) declined to 2.76%, a decrease from both the previous quarter (2.78%) and the same period last year (3.9%).

In terms of figures, the gross NPAs decreased to Rs 91,327.84 crore from Rs 113,271.72 crore YoY. Provisions for bad loans stood at Rs 2,501 crore, compared to Rs 4,392 crore YoY and Rs 3,316 crore QoQ.

SBI's capital adequacy ratio (Basel III) for the quarter was reported at 14.56%, slightly lower than the previous quarter's 14.68%. The earnings per share (EPS) saw an increase, rising to Rs 18.92 from Rs 18.71 QoQ.

The return on assets (ROA) experienced a marginal decrease of 1 basis point QoQ, settling at 1.22%. Furthermore, the debt-to-equity ratio improved, declining to 0.64 from 0.66 in the fourth quarter of FY23.

In terms of the balance sheet, SBI observed a credit growth of 13.90% YoY, with domestic advances experiencing a growth of 15.08% YoY. Notably, auto loans surpassed the Rs 1 lakh crore mark, while agricultural and corporate loans demonstrated year-on-year growth of 14.84% and 12.38%, respectively.

The driving force behind the growth in domestic advances was SME Advances, which achieved a notable growth of 18.27% YoY, followed by Retail Personal Advances with a substantial increase of 16.46% YoY.

The Provision Coverage Ratio (PCR) experienced a slight decline of 23 basis points (bps) YoY, reaching 74.82%, while the slippage ratio exhibited improvement, decreasing by 44 bps YoY to 0.94%.

The Credit Cost for Q1FY24 displayed an improvement of 29 bps YoY, reaching 0.32%. The Capital Adequacy Ratio (CAR) by the end of Q1FY24 saw a significant increase of 113 bps YoY, standing at 14.56%.

Despite facing a challenging quarter, SBI highlighted that its gross advances demonstrated resilience, and the 15 bps YoY reduction in gross non-performing assets (NPAs) indicated a continuous enhancement in asset quality.