SBI Q4 net profit up 55.89% at Rs9,549cr on surge in wholesale banking EBIT and lower bad loan provisions

16 May 2022 , 01:39 AM

SBI reported 4.45% yoy increase in total consolidated revenues in the Mar-22 quarter at Rs108,035cr. Revenues of SBI were up 3.35% on a sequential basis.

In terms of top line revenues, there was a surge in revenues from retail banking, treasury and insurance but revenues from wholesale banking were lower yoy.

However, it was wholesale banking that contributed to a near 3-fold jump in EBIT. Net interest income was up 15.26% yoy in Q4 while the net interest margins or NIM expanded by 20 bps at 3.40%.

For the Mar-22 quarter, the core operating profits were up 5.22% yoy at Rs75,292cr. Retail and wholesale advances grew by 10-11% in the quarter with retail portfolio crossing Rs10 trillion.

Home loans continue to grow and now constitute 23% of the domestic advances portfolio of SBI. While total deposits grew by 10.06% yoy, the CASA deposits grew by 7.78% on yoy basis. The CASA deposits now account for 45.28% of total deposits.

Profit after tax (PAT) for the Mar-22 quarter was up by 55.89% at Rs9,549cr. This was on the back of 29 bps gain in NIMs and lower provisions. Provision coverage ratio improved to 75.06% for the quarter. For the quarter, slippage ratio stands at 0.43%  while the credit cost is at 0.49%. The cost to income ratio fell by 29 bps to 53.31%.

NII stood at Rs31,198 crore. Consequently, the PAT margins improved from 5.92% to 8.84% in Q4FY22 compared to the year ago quarter. However, net margins were lower by 30 bps on a sequential basis.

Financial highlights for Mar-22 compared yoy and sequentially

	State Bank of India
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income	₹ 1,08,035	₹ 1,03,431	4.45%	₹ 1,04,528	3.35%
Operating Profit	₹ 21,967	₹ 21,178	3.72%	₹ 20,592	6.68%
Net Profit	₹ 9,549	₹ 6,126	55.89%	₹ 9,555	-0.06%
Diluted EPS	₹ 10.70	₹ 6.86		₹ 10.71
Operating Margins	20.33%	20.48%		19.70%
Net Margins	8.84%	5.92%		9.14%
Gross NPA Ratio	3.97%	4.98%		4.50%
Net NPA Ratio	1.02%	1.50%		1.34%
ROA (Not Annualized)	0.74%	0.58%		0.71%
Capital Adequacy	13.83%	13.74%		13.23%