state Bank of India (State Bank Of India) reported its highest ever quarter Net 14,205 crore profit for quarter 8,432 crore in the corresponding quarter of the previous year, a growth of 68%, ending December 2022.
The higher-than-expected increase in net profit was driven by higher net interest income, which grew by 24% to Rs 38,069 crore, led by a 17% increase in credit. The loan book of the bank stood at Rs 31.3 lakh crore at the end of the quarter.
Announcing the results, the bank’s chairman Dinesh Khara said that he expects good growth in the infrastructure segment, especially roads and ports. “Iron and steel should see good demand. We expect very strong demand from the consumer segment. There has been an increase in tourism, hotel and airport traffic and there could be an opportunity to finance these sectors,” he said.
Though bank deposits are growing at a slow pace, Khara said that single digit growth in bank deposits will not be an obstacle. Khara said, “We have additional government securities of Rs 3.2 lakh crore and we can withdraw money from there.”
A sharp fall in provisions for bad loans also boosted profits. Provisions for non-performing assets nearly halved to Rs 1,586 crore for the quarter under review. Gross non-performing assets ratio declined to 3.14% as against 3.52% in Q2FY23 and 4.5% in Q3FY22.
During the quarter, SBI’s stake in Jio Payments Bank declined from 30% to 28.9% as the bank did not participate in the rights issue of equity shares offered by the company. “As per the original plan, SBI was required to remain invested for five years. Now that we are completing five years, we are taking steps to rationalize our investments.
The higher-than-expected increase in net profit was driven by higher net interest income, which grew by 24% to Rs 38,069 crore, led by a 17% increase in credit. The loan book of the bank stood at Rs 31.3 lakh crore at the end of the quarter.
Announcing the results, the bank’s chairman Dinesh Khara said that he expects good growth in the infrastructure segment, especially roads and ports. “Iron and steel should see good demand. We expect very strong demand from the consumer segment. There has been an increase in tourism, hotel and airport traffic and there could be an opportunity to finance these sectors,” he said.
Though bank deposits are growing at a slow pace, Khara said that single digit growth in bank deposits will not be an obstacle. Khara said, “We have additional government securities of Rs 3.2 lakh crore and we can withdraw money from there.”
A sharp fall in provisions for bad loans also boosted profits. Provisions for non-performing assets nearly halved to Rs 1,586 crore for the quarter under review. Gross non-performing assets ratio declined to 3.14% as against 3.52% in Q2FY23 and 4.5% in Q3FY22.
During the quarter, SBI’s stake in Jio Payments Bank declined from 30% to 28.9% as the bank did not participate in the rights issue of equity shares offered by the company. “As per the original plan, SBI was required to remain invested for five years. Now that we are completing five years, we are taking steps to rationalize our investments.