SBI Q1 Results: net profit dropped by 6.7% | Swastika Blog - Share Market Updates, Latest News and Expert's Tips | Swastika Investmart Ltd (Swastika Investmart) Swastika
SBI Q1 FY23 Results

SBI Q1 Results: net profit dropped by 6.7%

SBI Financials

State Bank of India’s net profit in the first quarter of the current financial year on a standalone basis has declined by 7 percent.

State Bank of India (SBI) reported a net profit of Rs 6,068.08 crore compared with Rs 6,504 crore in the same quarter last year. Due to Mark to Market (MTM) losses on its investment book, the bank’s operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.

The bank’s interest income increased to Rs 72,676 crore from Rs 65,564 crore previously.Net interest income grew from Rs 27,638 crore in the first quarter of the previous fiscal to Rs 31,196 crore which is 12.87 percent. The net interest margin increased from 3.15 to 3.23 percent.

Core operating profit jumped by 14.39 percent year over year, from Rs 16,873 crore in Q1 FY22 to Rs 19,302 crore in Q1 FY23, when trading income and MTM were excluded.

The bank’s gross (NPA) ratio increased from 5.32 percent at June’s end of the previous year to 3.91 percent today. Similar to this, net NPAs decreased from 1.7% in June 2021 to 1.02 in June 2022. Domestic NIM for Q1FY23 climbed by 8 bps YoY to 3.23 percent. While the net NPA ratio decreased by 77 bps YoY to 1.00 percent, the gross NPA ratio decreased by 141 bps YoY to 3.91 percent.

The Provision Coverage Ratio (PCR), which was 75.05 percent, increased by 719 bps YoY. A 90.14 percent PCR (Inclusive AUCA) was reported. The slippage ratio for the reviewed quarter was 1.38 percent, an improvement of 109 bps year over year. Corporate loan volume increased by 10.57%, while SME and agricultural loans also saw year-over-year increases of 10.01% and 9.82%, respectively.

Deposit increased by 8.73% to Rs. 40 lakh crore. As of June 30, the bank’s CASA ratio dropped 64 basis points to 45.33 percent. Retail bank deposits are up 8.73% year over year. Credit Cost for Q1 FY23 was 0.61 percent, up 18 basis points year over year. At the end of the June quarter of 2022–23, the capital adequacy ratio (CAR) was 13.43%.

SBI added that 38% of retail asset accounts and 65% of savings bank accounts were opened online using YONO. The proportion of alternate channels in all transactions climbed from 95.1% in the first quarter of FY22 to 96.6 in the first quarter of FY23.

Reasons:

Due to Mark to Market (MTM) losses on its investment book, the bank’s operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.

The bank’s Return on Asset and Return on Equity, which was 0.48 percent and 10.09 percent, respectively, suffered from the MTM hit.

Non-interest income fell significantly. The sharp reduction in SBI’s non-interest income was a significant factor in the company’s profit decline. In the June quarter, SBI’s non-interest income was barely Rs 2,312 crore, compared to Rs 11,802 crore in the same quarter of the prior fiscal year.

How much return did SBI share give?

Talking about the stock of SBI, the company’s stock has given a return of 13 percent to the investors in YTD time. At the same time, it has given a return of 22.20 percent in the last year and has given a return of 90.02 percent to the investors in the last 5 years.

Performance of SBI Share Price

Promoter ownership of SBI was 57.57 percent as of June 2022, with no shares pledged.

Dividends of Rs 07.10 per share have been issued by SBI for the fiscal year that ended in March 2022.

SBI’s share price increased by 84.45, or around 19.38 percent, during the course of the past year, from Rs 435.7 to Rs 520.1.

At 43,884.2, the S&P BSE BANKEX Index is now trading (up 0.77 percent). It increased by 3,153.0 points (up 7.74 percent) in the past year, from Rs 40,731.3 to Rs 43,884.2.

The S&P BSE SENSEX has increased 8.25% overall.

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