State Bank of India (SBI) has reported its highest-ever quarterly standalone net profit at ₹14,205 crore in the third quarter of FY23 on the back of healthy growth in net interest income and non-interest income, and a sharp decline in loan loss provisions. This, even as asset quality improved, with GNPAs dipping below the ₹1-lakh-crore mark for the first time since 2016.

India’s largest bank’s net profit in the reporting quarter jumped 68 per cent y-o-y as against ₹8,432 crore a year ago. Net interest income rose 24 per cent y-o-y to ₹38,069 crore (₹30,687 crore).

Non-interest income (comprising fee income, forex income, cross sell income, treasury income and recovery from advance under collection accounts) was up 32 per cent y-o-y at ₹11,468 crore (₹8,673 crore). Loan loss provisions declined 49 per cent y-o-y to ₹1,586 crore (₹3,096 crore). However, standard assets provisions jumped 92 per cent y-o-y to ₹4,230 crore (₹2,201 crore).

‘Pace to continue’

Gross advances were up 17.60 per cent y-o-y and stood at ₹31,33,565 crore as at December-end 2022. Total deposits increased 9.51 per cent and stood at ₹42,13,557 crore.

“We expect the current pace of credit growth to continue in the next financial year also. But some moderation may happen. While we continue to pursue growth in core operating incomes, we have also been proactive in identifying any potential risk and built adequate provisions for the same,” said Dinesh Kumar Khara, Chairman, SBI.

Asset quality

GNPAs declined to 3.14 per cent of gross advances as at December-end 2022 against 3.52 per cent as at September-end 2022. Net NPAs nudged lower to 0.77 per cent of net advances against 0.80 per cent. Khara said GNPA numbers have dropped to their lowest level in more than six years and stood at ₹98,346.50 crore.

He added that the bank remains very well capitalised (with capital adequacy ratio of 13.27 per cent, not taking into account 9-months accrued profit). He expects internal accruals to be adequate to take care of the normal business growth requirements.