SBI reports strong financial performance: FY23 net profit jumps 58.6% to Rs 50,232 cr, Q4FY23 bet profit soars 83% to Rs 16,695 cr

The bank's operating profit for the fiscal year grew by 11.18% YoY to Rs 83,713 crores, while for the fourth quarter, it rose by 24.87% YoY to Rs 24,621 crores.

SBI's return on assets (ROA) and return on equity (ROE) for FY23 stood at 0.96% and 19.43%, respectively, reflecting strong performance. For the quarter ended March 2023, the ROA for the quarter improved by 49 basis points YoY, reaching 1.23%.

The net interest income (NII) for the last fiscal year witnessed a YoY increase of 19.99%. The domestic net interest margin (NIM) for the year increased by 22 basis points to 3.58%, while for the fourth quarter, it grew by 44 basis points YoY to 3.84%.

One basis point equals 1/100th of 1% or 0.01%.

SBI's balance sheet displayed favourable growth trends.

The bank's credit growth stood at 15.99% YoY, with domestic advances growing by 15.38% YoY.

Foreign offices' advances also recorded growth of 19.55% YoY.

The growth in domestic advances was primarily driven by retail personal advances, which increased by 17.64% YoY, followed by SME advances with a growth of 17.59% YoY.

Notably, SBI's Xpress Credit loans surpassed Rs 3 lakh crores. Furthermore, agricultural and corporate loans experienced YoY growth of 13.31% and 12.52%, respectively.

The bank's whole-bank deposits grew by 9.19% YoY, while the CASA (Current Account Savings Account) deposits increased by 4.95% YoY, resulting in a CASA ratio of 43.80% as of March 31, 2023.

SBI's asset quality showed significant improvement.

The gross NPA (Non-Performing Assets) ratio decreased by 119 basis points YoY, standing at 2.78%, while the net NPA ratio reduced by 35 basis points YoY, reaching 0.67%.

The provision coverage ratio (PCR) also witnessed an improvement of 135 basis points YoY, standing at 76.39%.

Including AUCA (Additional Unsecured Credit Availed), the PCR improved by 171 basis points YoY, reaching 91.91%.

The slippage ratio for the fiscal year improved by 34 basis points YoY, standing at 0.65%, while for the fourth quarter, it reached 0.41%.

The credit cost for the fiscal year improved by 23 basis points YoY, reaching 0.32%, while for the fourth quarter, it stood at 0.16%, reflecting a YoY improvement of 33 basis points.

SBI's capital adequacy remained strong, with the capital adequacy ratio (CAR) improving by 85 basis points YoY to 14.68% as of the end of FY23.

The bank's alternate channels played a significant role in customer acquisition and transactions. Around 64% of SB accounts.