SBI net profit rises 59%, tops Rs50k cr


MUMBAI: SBI is the first lender in the country to report an annual net profit of over 50,000 crore rupees. The public sector bank has also overtaken HDFC Bank, which was India’s most profitable lender for several years.
SBI on Thursday reported a net profit of Rs.16,695 crore for the March quarter, up 83% from Rs.9,114 crore in the same period last year. The bank’s net profit for FY23 was Rs.50,232 crore, up 59% from Rs.31,676 crore last year. HDFC Bank had reported a net profit of Rs.44,108 crore for FY23, up 19% from Rs.36,961 crore in FY22.

Gains were driven by an interest margin widening to 3.84% in the fourth quarter as both the loan book and interest rates on loans grew together. The bank was under less pressure to take deposits as it continued to have excess liquidity on its books. Accordingly kharathere was scope for further improvement in interest rate margins.
SBI declared a dividend of Rs. 11.3 per share, up from Rs. 7.1 a year ago. SBI Chairman Dinesh Khara said the bank had to make fewer provisions due to the improved asset quality. This was reflected in the fall in non-performing assets to 2.78% – the lowest level in over a decade. Khara said the bank is taking every step to ensure it sustainably maintains the quality of its loan book.
SBI’s share price fell 2.1% as the market expected even higher numbers. Khara said the increase in operating expenses was partly due to higher provisions for staff expenses ahead of the next wage review.

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