Winning Bizness Desk
Mumbai. Country's largest bank State Bank of India has broken all revenue records in the first quarter even as it's profit also reaching close to Rs 17000 crore. But SBI has disappointed because compared to the first quarter, the bank's profit has declined by around Rs 2600 crore. Whereas in the same period of the last financial year, the bank had made a profit of 8 percent, while the interest income had increased by 12 percent. State Bank of India announced the results for the September quarter on November 4, 2023. The net profit of the bank increased by 8 percent in the same period of last financial year. This figure has reached 14 thousand 330 crore rupees. While the profit of the company in the June quarter was Rs 16884 crore. This means the company has lost about Rs 2600 crore in profit. At the same time, the gap between interest earned and interest spent widened by 12 percent to Rs 39,500 crore. On the other hand, the bank's revenue for the September quarter increased by 26.4 percent to Rs 1.12 lakh crore compared to the same quarter last fiscal.
What other parameters say
Provisions and contingencies fell sharply to Rs 115.28 crore from Rs 3039 crore a year ago. Provisions for bad assets also declined to Rs 1,815 crore from Rs 2,011 crore. At the end of September, the gross NPA ratio stood at 2.55 percent, as against 3.52 percent a year ago. It was 2.76 percent in the first quarter. The net NPA asset ratio stood at 0.64 per cent at the end of September, as against 0.80 per cent a year ago. It was 0.71 percent in the first quarter.
Increase in debt
Credit cost increased by 6 basis points to 0.22 per cent in the second quarter on an annual basis, SBI said in a press release. Domestic net interest margin declined by 0.12 percent year-on-year to 3.43 percent in the quarter. Margins for the six months ended September rose by 0.06 per cent to 3.45 per cent on a year-on-year basis. In the September quarter, loans grew by 12.39 percent on a year-on-year basis. Advances have increased by 13.2 percent. Among domestic advances, SME loans accounted for 23 percent, followed by retail personal loans at 16 percent. Agricultural and corporate loans increased by 15 percent and 7 percent respectively. Bank deposits have grown at an annual rate of 12 percent. Out of which CASA deposits have grown by 5 per cent annually. The CASA ratio at the end of September was 41.88 percent. Shares of SBI closed up 1 percent at Rs 578.15 on the National Stock Exchange on Friday.
