SBI Q2FY24 net profit goes up 8% to Rs 14,330; NII stands at Rs 39,500 cr

This performance surpassed market expectations, beating the estimated net profit of Rs 14,221 crore for the quarter.

In contrast, the operating profit for the second quarter of FY24 stood at Rs 19,417 crores, demonstrating a decrease of 8.07 percent year-on-year.

Alongside this, the Provision Coverage Ratio (PCR) saw a decline, now standing at 75.45 percent, which represents a decrease of 248 basis points compared to the previous year.

SBI's 61 percent of SB accounts and 39 percent of retail asset accounts are acquired digitally through YONO.

Moreover, the Capital Adequacy Ratio (CAR) as at the end of Q2FY24 improved by 77 bps YoY and stands at 14.28 percent.

The net interest income (NII) stood at Rs 39,500 crore, which increased by 12.3 percent as compared to Rs 31,184 crore reported in the corresponding quarter of the previous fiscal.

In the first half of the fiscal year 2024, the Domestic Net Interest Margin (NIM) demonstrated a year-on-year increase of 6 basis points, reaching 3.45%.

However, in the second quarter of the same fiscal year, the Domestic NIM experienced a decrease of 12 basis points compared to the previous year, landing at 3.43%.

Moving on to the Balance Sheet, credit growth showed a notable increase of 12.39% year-on-year, with Domestic Advances leading the charge, growing by 13.21%.

Meanwhile, Foreign Offices’ Advances also experienced growth, albeit at a slightly lower rate of 8.11% year-on-year.

The surge in Domestic Advances was primarily fueled by SME Advances, which saw an impressive growth rate of 22.75% year-on-year, followed closely by Retail Personal Advances, which grew by 15.68% year-on-year. Notably, Foreign Office advances surpassed Rs 5 lakh crores.

Agri and Corporate loans registered year-on-year growth of 14.76% and 6.62% respectively.

Whole Bank Deposits experienced an 11.91% year-on-year increase, with CASA Deposits growing by 4.91% year-on-year. As of September 30th, 2023, the CASA ratio stood at 41.88%.

Turning to Asset Quality, there were positive strides. The Gross Non-Performing Assets (NPA) ratio saw a significant improvement, decreasing to 2.55%, a 97 basis point improvement year-on-year.

The Net NPA ratio also saw an improvement, declining to 0.64%, a 16 basis points improvement year-on-year. Provision Coverage Ratio (PCR), including AUCA, improved by 39 basis points year-on-year, now standing at 91.93%.

However, the standalone PCR declined by 248 basis points year-on-year, resting at 75.45%.

The slippage ratio for the first half of fiscal year 2024 showed improvement, decreasing by 16 basis points year-on-year to 0.70%.

In contrast, for the second quarter of fiscal year 2024, the Slippage Ratio experienced a modest increase of 13 basis points year-on-year, reaching 0.46%.

The Credit Cost for the second quarter of fiscal year 2024 also improved, decreasing by 6 basis points year-on-year to 0.22%.

Lastly, in the realm of Alternate Channels, a significant portion of SB accounts (61%) and retail asset accounts (39%) were acquired digitally through YONO.

The Share of Alternate Channels in total transactions saw an uptick, increasing from approximately 96.8% in the first half of fiscal year 2023 to about 97.7% in the first half of fiscal year 2024.