SBI Q2 results: Net profit goes up 8% to Rs 14,330 cr in Q2 FY24, asset quality improves

India's largest lender State Bank of India (SBI) on Saturday reported an 8 per cent year-on-year (YoY) growth in its Q2FY24 standalone net profit at Rs 14,330 crore. Its net interest income during the quarter ended September 2023 increased 12.3 per cent YoY to Rs 39,500 crore. Total income for the quarter grew by 26.4 per cent on year to Rs 1.12 lakh crore. 

The lender’s asset quality improved on year and quarter on quarter. The net non-performing assets ratio as of September end was 0.64 per cent, as compared to 0.80 per cent a year ago, and 0.71 per cent a quarter ago. Gross non-performing assets ratio as of September end was 2.55 per cent, compared with 3.52 per cent a year ago, and 2.76 per cent a quarter ago.

The capital adequacy ratio, i.e. the available capital that a bank has on hand to its risk-weighted assets, as per Basel-IIII norms was 14.28 per cent as of September end, compared to 13.51 per cent a year ago, and 14.56 per cent a quarter ago.

The domestic net interest margin (NIM) for the quarter decreased by 12 bps YoY to 3.43 per cent. However, margins for the six months ended September increased by 6 bps YoY to 3.45 per cent.

Credit growth was up 12.39 per cent YoY, with domestic advances growing by 13.2 per cent during the quarter. The growth in domestic advances was driven by SME loans at 23 per cent, followed by retail personal loans, which grew by 16 per cent YoY.

> Domestic Advances growth driven by SME Advances (22.75 per cent YoY) followed by Retail Personal Advances which grew by 15.68 per cent YoY

> Foreign Office advances cross Rs 5 lakh crore

> Agri and Corporate loans registered YoY growth of 14.76 per cent and 6.62 per cent, respectively

> Whole Bank Deposits grew at 11.91% YoY out of which CASA Deposit grew by 4.91 per cent YoY

> CASA ratio stands at 41.88 per cent as on 30th September 2023

The bank said the during the half year ended September 30, 2023, it has infused additional capital of Rs 489.67 crore in SBI General lnsurance Co. Ltd., a subsidiary. The company has also allotted ESOP to employees and consequently, Bank's stake has decreased from 69.95 per cent to 69.74 per cent.

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