Sbi: At 16.9k crore, SBI posts highest quarterly profit

MUMBAI: State Bank of India has reported its highest-ever quarterly net profit of Rs 16,884 crore for April-June 2023. The net profit, which rose due to higher net interest income, is 178% higher than Rs 6,068 crore in the corresponding quarter last year.

During the quarter, the bank’s advances grew 13.9% to Rs 33 lakh crore from Rs 29 lakh crore in the corresponding quarter last year. The bank’s deposits grew 12% to Rs 45.3 lakh crore from Rs 40.5 lakh crore a year ago.
The bank’s net interest income jumped 24.7% to Rs 38,905 crore from Rs 31,196 crore a year earlier. The bank’s bottom line was boosted by lower provisions during the quarter, which enabled the bank to retain more of its earning.

Despite the increase in net profit, SBI’s shares closed 3% lower as the net interest income for the first quarter was marginally lower than the Q4FY23 after some of the older deposits got repriced. Announcing the results, SBI chairman Dinesh Khara said that he had set a 14%-16% target range for credit growth while the credit costs would be contained at half a percentage point. Khara said that the bank had to make lower provisions for bad loans as the asset quality had improved. “The ageing provisions in respect of existing non-performing assets have also been taken care of,” said Khara.
He said that the bank was focused on increasing its share of current and savings account deposits.