State Bank of India, SBI had a great quarter of this year by reporting a 178.24% year-on-year (YOY) jump in its 2024 quarter profit at approx. Rs 16884 crore.Â
The gross NPA of SBI plunged to Rs 91327.84 crore at Rs 113271.72 crore year-on-year. Keeping in track the past performances, SBI put provisions at Rs 2501 crore as against Rs 4382 Crore year-on-year and Rs 3316 crore Quarter on quarter.
Current financial analysis of the bank
India’s largest lender bank state bank of India, SBI’s capital adequacy ratio (Basel III) came at 14.56% per share and 14.68 % which was estimated sequentially.
The earnings per share (EPS) of the bank rose to Rs 18.92 vs Rs 18.71 Quarter on quarter. Last year the forecasted were even lower.
The return on assets was witnessed fairly low as the returns were 1 bps Quarter on Quarter to 1.22%, while the debt to equity ratio of the bank also went down to 0.64 as compared to 0.66 in Quarter 4 of Financial year 2024.
State bank of India’s net interest margin for the first quarter increased 24 bps Year-on-year to 3.47%.
And on the balance sheet side of liabilities, credit growth was also witnessed at 13.90% Year-on-year with domestic advances growing at 15.08% Year on year-on-year.
The Auto loans crossed the Rs 1 lakh crore figure mark limit while the agricultural and other corporate loans registered with the banks year-on-year growth of approx 14.84% and 12.38%, respectively.
Domestic Advances growth was driven by SME Advances (18.27% Year-on-year) followed by Retail personal advances which are growing by 16.46% year-on-year.
The provision coverage ratio of the bank slipped to 23 basis calculated points year-on-year to an unexpected 74.82%. While the slippage ratio was improved by 44 basis point year-on-year growth to 0.94%. Credit cost recorded for Financial year quarter 1, 24, improved by 29 basic points Year-on-year to 0.32%.
Capital Adequacy Ratio of the bank (CAR) as at the end of first quarter FY24 was improved by 113 basic points year-on-year and stands at 14.56% now.
The quarters this year have been quite challenging for the bank. State bank of India said that its gross advances level have displayed a certain resilience and the 15 basic points calculated year-on-year reduction in gross NPA of the bank. The reduction in the gross NPA, shows the continued improvement in the quality of the assets the bank is making.
Though the quarterly release of the numbers had been satisfactory, the shares of the company still plunged by 3%. And were trading currently at Rs 572.80 on the BSE.
