Kolkata/IBNS: Indias largest public sector lender State Bank of India on Thursday reported that its FY23 net profit crossed Rs 50,00 crore reaching Rs 50,232 crores, representing a YoY growth of 58.58%. The net profit for the fourth quarter also witnessed impressive growth, surging by 83.18% to Rs 16,695 crores.
The banks operating profit for the fiscal year grew by 11.18% YoY to Rs 83,713 crores, while for the fourth quarter, it rose by 24.87% YoY to Rs 24,621 crores.
SBIs return on assets (ROA) and return on equity (ROE) for FY23 stood at 0.96% and 19.43%, respectively, reflecting strong performance. For the quarter ended March 2023, the ROA for the quarter improved by 49 basis points YoY, reaching 1.23%.
The net interest income (NII) for the last fiscal year witnessed a YoY increase of 19.99%. The domestic net interest margin (NIM) for the year increased by 22 basis points to 3.58%, while for the fourth quarter, it grew by 44 basis points YoY to 3.84%.
One basis point equals 1/100th of 1% or 0.01%.
SBIs balance sheet displayed favourable growth trends.
The banks credit growth stood at 15.99% YoY, with domestic advances growing by 15.38% YoY.
Foreign offices advances also recorded growth of 19.55% YoY.
The growth in domestic advances was primarily driven by retail personal advances, which increased by 17.64% YoY, followed by SME advances with a growth of 17.59% YoY.
Notably, SBIs Xpress Credit loans surpassed Rs 3 lakh crores. Furthermore, agricultural and corporate loans experienced YoY growth of 13.31% and 12.52%, respectively.
The banks whole-bank deposits grew by 9.19% YoY, while the CASA (Current Account Savings Account) deposits increased by 4.95% YoY, resulting in a CASA ratio of 43.80% as of March 31, 2023.
SBIs asset quality showed significant improvement.
The gross NPA (Non-Performing Assets) ratio decreased by 119 basis points YoY, standing at 2.78%, while the net NPA ratio reduced by 35 basis points YoY, reaching 0.67%.
The provision coverage ratio (PCR) also witnessed an improvement of 135 basis points YoY, standing at 76.39%.
Including AUCA (Additional Unsecured Credit Availed), the PCR improved by 171 basis points YoY, reaching 91.91%.
The slippage ratio for the fiscal year improved by 34 basis points YoY, standing at 0.65%, while for the fourth quarter, it reached 0.41%.
The credit cost for the fiscal year improved by 23 basis points YoY, reaching 0.32%, while for the fourth quarter, it stood at 0.16%, reflecting a YoY improvement of 33 basis points.
SBIs capital adequacy remained strong, with the capital adequacy ratio (CAR) improving by 85 basis points YoY to 14.68% as of the end of FY23.
The banks alternate channels played a significant role in customer acquisition and transactions. Around 64% of SB accounts and 35% of retail asset accounts acquired digitally through YONO.
Share of Alternate Channels in total transactions increased from around 95% in FY22 to nearly 97% in FY23.
