MUMBAI: State Bank of India has reported a net profit of Rs 14,430 crore for the quarter ended September 2023, an increase of 8% over Rs 13,265 crore in the corresponding quarter last year.
The increase was driven by a sharp drop in provisions for bad loans as asset quality improved. The operating profit was down 8% at Rs 19,417 crore compared to Rs 21,120 crore in the corresponding quarter last year, despite net interest income rising 18% Rs 39,500 crore.
The bank’s gross advances were up 12.4% at Rs 33 lakh crore while its deposits were up 11.9% year-on-year at Rs 46.9 lakh crore.
SBI chairman Dinesh Khara said the improvement in asset quality was reflected in the bad loans falling down to their lowest level in over a decade. “The ratio of gross NPA (non-performing assets) is down to 2.55% from 3.52% a year earlier while net NPAs are down to 0.64% from 0.8% a year ago,” he added.
“The second half is the busy season. We expect to grow 13%-14%. We are seeing growth in all sectors, from retail to SME to agriculture. The growth in corporate is only 6.6% because of the underutilisation of limits,” said Khara.
Responding to concerns of the regulator and analysts on the rise in unsecured loans, Khara said the bank did not have any significant lending in the small-ticket category (where loans are below Rs 50,000).
The bank’s share in home loans dropped to 27.4% from 33.4% in the June quarter. The percentage of auto loans also dipped very marginally to 18.3% from 19.5%.