Q1 results of SBI; net profits dip by 6.7 percent

The State Bank of India (SBI) released its results for the first quarter (Q1) of this year (FY23). The bank generated profits but did not reach the market estimations. The public sector bank talks about government securities and their impact on their performance. 

On 6 August 2022, Saturday, State Bank of India (SBI), released its financial results for the first quarter (Q1) of this financial year (FY23), which ended on 30 June. During these three months, the company’s financial position was stable and had steady progress, the numbers of SBI haven’t reached the market estimations. Amid the increasing inflation and the constant change in repo-rate by the Reserve Bank of India (RBI), the bank has managed to gain stability throughout the quarter. 

The largest public sector bank in the country with its Q1 results has left stakeholders satisfied yet disappointed. Let’s have a look at the financial results of the company. 

Net Profit by SBI

SBI generated a net profit of ₹6,068 crores in this quarter which shows a Year-on-Year (YoY) decline of 6.7 percent. Last year in the same quarter the company generated a net profit of ₹6,504 crores. For last quarter the net profit was ₹9,113 crores which are now down by 33 percent. The standalone Net Profit before Tax value amounted to ₹8,360 crores. The bank faced a market-to-market loss of ₹6,549 crores.

Revenue generated  

The company’s total income for this quarter was ₹74,998 crores of which the other income amounted to ₹2,312 crores. There is a sharp decline of 80.4 percent in other incomes as last year this amount was recorded at ₹11,802 crores. For the quarter ended March 2022, this amount was ₹11,880 crores. The reason for this decline as stated by the bank is; that the bank is responsible for government securities bonds, state government loans (SDL), and other public finances on a large scale. Hence, any volatility in the bonds market affects the company’s financial position. The Net Interest Income (NII) earned by the bank is ₹72,676 crores which is up from ₹70,733 crores last quarter and ₹65,564 crores from last year. 

Deposits with SBI

The total deposits made in the company resulted in ₹4,45,695 crores which have shown a YoY growth of 8.7 percent. The ratio between current account deposits and savings account deposits (CASA) was 45.97 which is lower by 64 basis points (bps) than last year. However, due to stable loan growth, the company could raise its CASA deposits by 6.5 percent YoY.

Advances

The total advances increased by 14.9 percent YoY resulting in ₹28,15,249 crores. For the last quarter of FY22, the company recorded this amount at ₹27,33,966 crores which show a substantial growth of 2.9 percent. The corporate loans increased by 10.6 percent, retail loans by 18.6 percent, and home loans by 13.8 percent. The advanced position of the company is appreciated by analysts as it has increased steadily amidst the current economic crisis. 

Other

The balance sheet of the company was tallied at ₹50,25,820 crores crossing the 50 lakh mark. The fixed assets of the company were shown at ₹41,960 crores whereas other assets stand at ₹3,56,523 crores. The total investments of the public sector bank stand at ₹15,23,204 crores. On the other hand, the borrowings are at ₹4,80,653 crores and other liabilities account for ₹2,08,108 crores. The bank’s operating profits stood at ₹12,752 crores which were impacted due to the current market conditions. Though the operating income was on the higher side, the expenses were also high.

SBIThis was a brief overview of the SBI’s performance in the first quarter. The largest public sector bank in the country is all set for the second quarter of this year, with all stakeholder’s eyes on them.