India’s largest lender State Bank of India (SBI) has surpassed street estimates by a significant margin, reporting a year-on-year (YoY) decline of 6.7 per cent in net profit, amounting to ₹6,068 crore in Q1FY23, compared to ₹6,504 crore in Q1FY22. Despite the dip in net profit, the country’s largest commercial bank witnessed a notable increase in NII from ₹27,638 crore in Q1FY22 to ₹31,196 crore in Q1FY23, marking a near 12.87 per cent YoY rise.
During the announcement of the Q1FY23 results, SBI shared that the operating profit for Q1FY23 was ₹12,753 crore, down from ₹18,975 crore in Q1FY22, affected by MTM losses on the investment book.
On the asset quality front, SBI reported a Gross NPA ratio of 3.91 per cent in Q1FY23, down by 141 bps YoY, and a Net NPA ratio of 1.00 per cent, down by 77 bps YoY. The Provision Coverage Ratio (PCR) improved significantly by 719 bps YoY, reaching 75.05 per cent, and stands at 90.14 per cent when including AUCA.
SBI’s slippage ratio for Q1FY23 is 1.38 per cent, showing a YoY improvement of 1.09 per cent. The credit cost for the public sector bank in Q1FY23 is 0.61 per cent, approximately 18 bps lower than the credit cost in Q1FY22.
In terms of credit growth, SBI reported a YoY growth of 14.93 per cent, with Domestic Advances growing at 13.66 per cent and Foreign Offices’ Advances growing by 22.39 per cent YoY.
During the Q1FY23 results announcement, SBI announced that its balance sheet size has crossed ₹50 lakh crores, and its Capital Adequacy Ratio (CAR) as of the end of Q1FY23 stands at 13.43 per cent.
On Monday SBI shares closed at Rs 567.90 each, lower by 0.94% on NSE.
