SBI Q1 result: Net profit down 6.7% to ₹6,068 crore, NII up 12.87%

SBI’s profitability in Q1FY23

Announcing Q1 results for the financial year 2022-23, SBI has reported operating profit for Q1FY23 12,753 crore as against Rs. 18,975 crore in Q1FY22, impacted by MTM’s loss on investment book.

The MTM hit also had an adverse impact on the RoA and RoE of the bank, which are 0.48 per cent and 10.09 per cent respectively.

Asset quality in Q1FY23

On the asset quality front, SBI reported a 141 bps year-on-year decline in the gross NPA ratio to 3.91 per cent, while the net NPA ratio declined 77 bps year-on-year to 1.00 per cent. The Provision Coverage Ratio (PCR) has increased by 719 bps on a year-on-year basis and stands at 75.05 per cent. PCR (including AUCA) is 90.14 percent.

SBI has a slippage ratio of 1.38 per cent for Q1FY23, which is better at 1.09 per cent in YoY terms. The public sector bank’s credit cost for Q1FY23 is 0.61 per cent, which is about 18 bps better than its credit cost for Q1FY22.

SBI has registered a credit growth of 14.93 per cent year-on-year. Its domestic advances grew by 13.66 per cent y-o-y and advances to overseas offices grew 22.39 per cent y-o-y.

SBI balance sheet after June 2022

SBI’s home advance growth is primarily driven by retail personal advances (18.58 per cent YoY), of which home loans grew at 13.77 per cent year-on-year. PSU Bank’s corporate loan book grew by 10.57 per cent. SMEs and agriculture credit have also registered an annual growth of 10.01 per cent and 9.82 per cent respectively.

“Bank’s balance sheet size exceeds 50 lakh crore,” adding, “Capital Adequacy Ratio (CAR) stands at 13.43 per cent at the end of Q1FY23,” SBI said while announcing its Q1 results on Saturday.

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