State Bank of India Q4FY23 PAT up 89.5% at Rs18,094cr on 29.5% growth in net interest income (NII)

SBI reported 26.7% growth in total revenues for the March 2023 quarter on consolidated basis at Rs136,852cr. Revenue growth was 7.57% in sequential terms for Q4FY23. For the quarter, the company saw growth in revenues across retail banking, corporate banking, and treasury. However, operating profits from corporate banking fells sharply while the operating profits from retail banking and treasury were sharply higher on yoy basis. 

Net interest income (NII) for Q4FY23 was up 29.5% you at Rs40,393 crore. For the same period, the net interest margins (NIM) expanded by 44 bps from 3.40% to 3.84%. For the quarter, alternate channels were very robust with 64% of SB accounts and 35% of retail asset accounts coming via Yono. Slippage ratio improved by 34 bps to just 0.65%. The credit cost improved buy 33 bps to just 0.16% for the fourth quarter.

Financial highlights for Mar-23 compared yoy and sequentially

 State Bank of India    
Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income

₹ 1,36,852

₹ 1,08,035

26.67%

₹ 1,27,219

7.57%

Operating Profit

₹ 27,230

₹ 21,967

23.96%

₹ 27,552

-1.17%

Net Profit

₹ 18,094

₹ 9,549

89.48%

₹ 15,477

16.91%

      
Diluted EPS

₹ 20.27

₹ 10.70

 

₹ 17.34

 
Operating Margins

19.90%

20.33%

 

21.66%

 
Net Margins

13.22%

8.84%

 

12.17%

 
Gross NPA Ratio

2.78%

3.97%

 

3.14%

 
Net NPA Ratio

0.67%

1.02%

 

0.77%

 
Return on Assets

1.23%

0.74%

 

1.08%

 
Capital Adequacy

14.68%

13.83%

 

13.27%

 

 

For Q4FY23, the operating profits were up 23.96% yoy while the net profits were up 89.5% yoy due to provisions more than halving on yoy basis in Q4FY23. Gross NPAs and Net NPAs fell sharply while the annualized ROA stood at healthy 1.23%. This is the highest profit that SBI ever reported in any quarter and has been driven by a sharp spread caused by rising loan yields combined with deposits not keeping pace or rising with a lag.

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