SBI Q2 net profit up 74% to Rs 13,265 crore on improved interest margins

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New Delhi: For the July-September quarter of 2Q23, State Bank of India reported a 73.93% year-on-year (y-o-y) increase in net profit to Rs 13,265 crore on improved interest margins and lower loan loss provisions.

The country’s largest lender reported a net profit of Rs 7,627 crore in Q2FY22. On the BSE, the bank’s stock rose 1.53 percent to close at Rs 593.75 per share on Friday.

Compared to the second quarter of FY22, net interest income increased by 12.83% YoY to Rs 35,183 from Rs 31,184. It was up 12.78% from Rs 31,196 crore in FY23.

The net interest margin (NIM) of the bank’s domestic operations increased to 3.55% from 3.50% in the second quarter of 2022. It was up 5 basis points from the first quarter of 2010, when it was 3.23 percent.

In the second quarter of 2023, bad debt provisions declined by 25.5 percent to Rs 2,011 crore from Rs 2,699 crore in the same quarter last year. Provisions decreased from Rs 4,268 crore in the first quarter of 2010.

SBI’s advances grew by 19.93% from Rs 25.30 trillion in Q2FY22 to Rs 30.35 trillion in Q2FY23.

Starting from Rs. 38.09 trillion in Q22 Rs. 41.9 trillion in Q2FY23, its deposits grew by 9.99 percent YoY. The deposit base increased from 40.45 trillion rupees in June 2022.

Gross non-performing assets (NPAs) declined from 4.9% last year to 3.52% in Q2 2023, reflecting an improvement in its asset quality profile. There was 3.91 percent of GDP in June 2022 (Q1FY23).

At the end of the second quarter of fiscal year 23, the NPA ratio was 0.80%, compared to 1.52% a year earlier and 1.00% in the first quarter.

Compared to 87.68 percent a year ago and 90.14 percent in the first quarter of 2010, the loan loss coverage ratio was 91.54 percent in the second quarter of 2023.

The bank’s general solvency ratio was 13.51 percent on September 30, compared to 13.35 percent a year earlier and 13.43 percent in the first quarter of 2010.



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