State Bank of India (SBI), the nation’s largest lender, has announced its financial results for the July-September FY24 quarter, delivering an impressive 8% increase in net profit. The bank’s performance surpassed market estimates, signaling a strong quarter for the banking giant.
1. Robust Net Profit: SBI reported a net profit of Rs 14,330 crore for the Q2FY24, demonstrating an 8% growth compared to the Rs 13,265 crore recorded in the corresponding quarter the previous year. This result exceeded market expectations, which had estimated a net profit of Rs 14,221 crore.
2. Net Interest Income (NII): The bank’s net interest income (NII) for the quarter stood at Rs 39,500 crore, marking a significant increase of 12.3% when compared to the previous fiscal’s Q2 NII of Rs 31,184 crore.
3. Improved Asset Quality: SBI’s gross non-performing asset (NPA) ratio decreased to 2.55% in Q2FY24, showing improvement from the 3.52% reported in the same quarter of the prior year. Meanwhile, the net NPA for the quarter stood at 0.64%, demonstrating a positive change from the 0.80% reported on a year-on-year basis.
4. Operating Profit: The operating profit for Q2FY24 is at Rs 19,417 crores, although it has seen an 8.07% decline compared to the previous year.
5. Provision Coverage Ratio (PCR): The Provision Coverage Ratio (PCR) stands at 75.45%, which reflects a decline by 248 basis points (bps) year-on-year.
6. Digital Acquisition: SBI continues its digital expansion, with 61% of savings bank accounts and 39% of retail asset accounts acquired digitally through the YONO platform.
7. Capital Adequacy: The Capital Adequacy Ratio (CAR) for Q2FY24 has improved by 77 bps year-on-year, reaching 14.28%.
State Bank of India’s Q2FY24 financial results have surpassed market expectations with an 8% surge in net profit, reflecting the bank’s resilient performance. Notably, SBI’s NII witnessed significant growth, and its asset quality has improved, with a reduction in both gross and net NPA ratios. The bank’s continued focus on digital acquisition and improved capital adequacy ratio further underlines its commitment to growth and stability in the banking sector.