Interest income boosts SBI net profit by 178%.

MUMBAI:

State Bank of India (SBI), the largest lender in the nation, reported a 178% increase in net profit for the quarter ending June 30 to Rs 16,884 crore, mostly due to a decrease in provisions for bad loans and an increase in interest revenue.

The difference between money received and interest paid, or the bank’s net interest income, increased by 25% to Rs 38,904.9 crore. An important measure of profitability called net interest margin increased from 3.23% to 3.47% during the past year. The public sector lender’s asset quality increased as the bank’s gross non-performing assets (NPA) ratio decreased from 3.91% to 2.76% at the end of June.

Additionally, the net NPA ratio increased from 1% in June 2022 to 0.71% in June 2023. As of the end of June this year, it had a gross NPA of Rs 91,327 crore as opposed to Rs 1.13 lakh crore during the same period last year. Lower provisions were made by the bank thanks to a decline in problematic loans. To Rs 2,501.3 crore, provisions for the quarter decreased by 43% year over year.

Dinesh Khara, the chairman of SBI, indicated during a press conference that the bank hoped to boost credit by 14–16% during the current fiscal year. “Our credit growth will be broad-based in retail, agriculture, small and medium-sized enterprises, and the corporate sector,” he declared.

The bank would be aware of the expense of deposit growth, the chairman stated in a statement regarding deposit growth. “I continue to have a statutory liquidity ratio surplus of Rs 4 trillion. I’m not required to make a large payment to mobilise deposits. But I promise to treat my clients fairly,” Khara remarked.

As of June 30, 2023, the bank’s deposits had climbed by 12% from the previous year to reach Rs. 45.3 lakh crore, while gross advances had increased by 13.9% to Rs. 33 lakh crore. In the current fiscal year, SBI plans to lend Rs 3.5 lakh crore to the business sector.