SBI net profit rises 10% to Rs 20,160 crore; total business crossed Rs 100 lakh cr
The bank’s standalone net profit climbed to Rs 20,160 crore from Rs 18,331 crore a year earlier.
The increase was mainly driven by a sharp jump in non-interest income, which rose 30.4% year-on-year to Rs 19,919 crore, boosted by a Rs 4,593 crore gain from the partial sale of its Yes Bank stake.
Operating profit rose 8.9% to Rs 31,904 crore, reflecting resilient core performance despite rising funding costs.SBI’s domestic net interest margin fell 18 basis points to 3.09% from 3.27% in the same quarter last year, as deposit costs climbed across the sector.
Net interest income edged up 3.3% to Rs 42,984 crore, supported by a 12.7% increase in total advances to Rs 44.2 lakh crore.
Retail, agriculture, and MSME lending remained the main growth drivers, with SME loans up 18.8% and retail personal advances 14.1%.Deposits grew 9.3% year-on-year to Rs 55.9 lakh crore, helped by a 17.9% rise in current account balances.
The bank’s asset quality improved, reflecting stronger recoveries and tighter credit monitoring.Announcing the results the banks chairman CS Setty said that the asset quality of the bank was the best in two decades.
The Gross NPA ratio fell by 40 bps to 1.73% and the Net NPA ratio reducing to a low of 0.42%.“The banking reforms announced as part of the monetary policy are credit accretive and will push up bank credit growth by one percentage points.
We are revising our credit growth target from 11% to 12-14%,” said Setty.
He added that while corporate growth was good with Rs 7 lakh crore of credit pipeline, there have been repayments from companies that had cash or has raised equity.
