SBI Q2FY23 Results: Net profit jumps nearly 74% YoY on improved asset quality and higher loans – check highlights here

India’s largest lender State Bank of India on Saturday reported strong second-quarter earnings for the financial year 2022-23 (Q2FY23) as both profit and net interest income (NII) reported double-digit year-on-year growth, similarly, the asset quality of the bank improved during the quarter.

SBI’s profit grew almost 74 per cent YoY at Rs 13,264 crore in the July-September quarter for FY23 as compared to Rs 7,626 crore in the corresponding quarter of the earlier fiscal, while the net interest income up by nearly 13 per cent YoY at Rs 35,183 crore in Q2FY23 against Rs 31,183 crore in Q2FY22.

Sequentially, the state-owned bank’s asset quality improves as gross NPA (non-performing assets) declined by 3.52 per cent from 3.91 per cent and net NPA dipped by 0.8 per cent from 1 per cent during the July-September quarter of FY23.

Provision Coverage Ratio without AUCA as on September 30, 2022, is at 77.93 per cent (PCR with AUCA is at 91.54 per cent, SBI said in the exchange filing. AUCA represents Accounts that have been fully provided for and transferred to a separate head called Advance under Collection Account.

It also said that the Bank has not acquired any stressed loan during Q2FY23.

Other Key Highlights

Profitability

• Operating Profit for Q2FY23 at Rs. 21,120 crores; grew by 16.82% YoY.

• ROA at 1.04% for the quarter improved by 38 bps YoY.

• Bank’s ROA and ROE for the half year stand at 0.76% and 16.08% respectively.

• Domestic NIM for Q2FY23 increased by 5 bps YoY to 3.55%.

Balance Sheet

• Credit growth at 19.93% YoY with Domestic Advances growing by 18.15% YoY.

• Foreign Offices’ Advances grew by 30.14% YoY.

• Domestic Advances growth driven by Corporate Advances (21.18% YoY) followed by

Retail Personal Advances which grew by 18.84% YoY.

• REH Advances cross Rs. 6 lakh crores.

• SME and Agri loans have registered YoY growth of 13.24% and 11.00% respectively.

• Whole Bank Deposits grew at 9.99% YoY, out of which CASA Deposit grew by 5.35%

YoY. CASA ratio stands at 44.63% as on 30th September 22.

Asset Quality

• Slippage Ratio for Q2FY23 at 0.33% improved by 33 bps YoY.

• Credit Cost for Q2FY23 at 0.28%; improved by 15 bps YoY.