SBI’s annual profit breaches Rs 50,000 crore mark in FY23

19 May 2023 , 11:45 AM

State Bank of India announced its results for the quarter ended March 2023, driven by strong loan demand and falling provisions and improved asset quality to the best in the last three years.

The banking major reported a 83% y-o-y growth in net profit at Rs 16,695 crore in Q4FY23, as compared to Rs 9,114 crore in the previous corresponding quarter.

The bank’s net profit surpassed Rs 50,000 crore mark in FY23, the first time that any bank crossed that level.

The bank experienced a 16% rise in credit growth, driven by a 20% increase in loans from international branches and 18% growth in both retail and SME (Small and Medium Enterprises) advances.

Corporate loans saw a 13% year-on-year growth. The robust expansion in loans was evident in a substantial 29% growth in net interest income (NII), reaching Rs 40,393 crore.

The impressive growth in revenue offset the 27% increase in operating expenses, which encompassed elevated provisions for wage revisions starting from November 2022, expenses related to technology, mobile banking, and deposit insurance premiums.

The bank’s asset quality showed ongoing improvement, with the gross NPA (Non-Performing Assets) ratio declining to its lowest level in ten years at 2.78%.

The decrease in non-performing assets (NPAs) led to a significant reduction in total provisions to Rs 3,316 crore in March 2023, thereby contributing to the profit.

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