SBI Reports 14.3% Rise in Q2 Net Profit to ₹23,038 Crore
State Bank of India announces significant growth in net profit for the second quarter, surpassing analyst expectations.
SBI's net profit for Q2 FY2024 reached ₹23,038 crore, a 14.3% increase year-on-year.
Net interest income rose to ₹49,143 crore, exceeding market estimates.
Gross non-performing assets ratio improved to 1.39%, marking the lowest level in over 20 years.
State Bank of India (SBI), the largest bank in India, disclosed a notable 14.3% increase in net profit for the second quarter of the fiscal year 2024, amounting to ₹23,038 crore. This growth was bolstered by an exceptional gain of ₹7,289 crore, significantly higher than the ₹4,593 crore reported during the same period last year. The reported profit also surpassed the estimates provided by CNBC-TV18, which anticipated a profit of ₹22,859 crore.
In addition to the profit surge, SBI's net interest income (NII) climbed by 14.7% year-on-year, reaching ₹49,143 crore, up from ₹42,847 crore in the previous year. This figure also exceeded the CNBC-TV18 forecast of ₹47,901 crore. However, the bank's operating profit saw a slight decline of 1.4% from the previous year, falling to ₹26,937 crore from ₹27,311 crore.
SBI's asset quality showed improvement, with the gross non-performing assets (GNPA) ratio decreasing to 1.39% from 1.47% in the previous quarter, marking the lowest level in over two decades. The net NPA ratio also eased to 0.36%, down from 0.38%. Fresh slippages were recorded at ₹5,227 crore, a decrease from ₹7,046 crore in the preceding quarter, although it was higher than the ₹4,754 crore reported a year ago.
The domestic net interest margin (NIM) improved by 11 basis points to 3.11%, while the domestic credit-deposit ratio stood at 73%, slightly down from 74.2% in the previous quarter. SBI maintained its credit growth guidance at 14-15% and expressed optimism about sustaining a net interest margin above 3% for FY27. The bank highlighted its strong current account savings account (CASA) franchise as a competitive advantage in the industry.
Following the announcement of its quarterly results, SBI shares experienced a decline of 1.7%, closing at ₹970.25 on November 3. The stock has seen a 1.5% drop year-to-date, contrasting with an 8.9% decrease in the Nifty 50 index during the same timeframe. SBI's market capitalization is currently valued at ₹8.96 lakh crore.
