State Bank of India (SBI), the country’s largest lender, on Thursday logged an 83 per cent jump in net profit at Rs 16,694.51 crore for the fourth quarter of 2022-23 fiscal year on higher interest income and low provisioning. In the January-March quarter of 2021-22 financial year, SBI’s net profit on standalone basis was Rs 9,113.53 crore. The bottom-line beat Bloomberg’s estimate of Rs 15,186 crore.
For the full 2022-23 fiscal year, the bank’s net profit increased 59 per cent to Rs 50,232.45 crore. The profit in 2021-22 fiscal was Rs 31,675.98 crore.
During the March quarter of 2022-23 fiscal, the bank’s interest income rose 31 per cent to Rs 92,951 crore, SBI said in a regulatory filing. Provisioning for bad loans and contingencies nearly halved to Rs 3,315.71 crore during the quarter, as against Rs 7,237.45 crore in the January-March period of 2021-22.
SBI’s asset quality improved considerably with the gross non-performing assets (GNPAs) falling to Rs 90,928 crore in Q4FY23, down 19 per cent YoY from Rs 112,023.4 crore seen at the end of Q4FY22. On a quarterly basis, GNPAs fell 7.5 per cent.
NNPAs, meanwhile, reduced to Rs 21,466.64 crore from Rs 27,965.71 crore YoY and Rs 23,484.3 crore QoQ. NNPA ratio, thus, stood at 0.67 per cent at the end of the March quarter as against 1.02 per cent in Q4FY22 and 0.77 per cent in Q3FY23.
“Expected credit loss (ECL) is a reflection of underwriting standards. It is a fiction till there is some clarity from the RBI. Retail book is provided to the extent of 48 per cent, while corporate book is provided for 88 per cent. Our non-NPA provisions are over Rs 35,500 crore,” said Dinesh Khara, chairman, SBI.
Slippages for the year fell to Rs 18,421 crore from Rs 25,021 crore seen at the end of FY22.
SBI also declared a dividend of Rs 11.30 per equity share (1130 per cent) for the financial year ended March 31, 2023. The date of payment for the dividend is fixed on June 14.
Shares of SBI, however, ended in the red after Thursday’s trading. The stock closed at Rs 574.15 apiece, down 2.11 per cent on the BSE on Thursday.