SBI's Q1 profit zooms 178% YoY to Rs 16,884 crore

India's largest lender, State Bank of India (SBI), reported a profit of Rs 16,884 crore in Q1, marking a significant jump of 178.24% year-on-year (YoY) compared to the same period in the previous financial year.

As per a regulatory filing, SBI announced that in the first quarter of FY24, it achieved a total income of Rs 108,038.83 crore (compared to Rs 74,988.57 crore in Q1FY23) and a net profit of Rs 16,844.29 crore (as opposed to Rs 6,068.08 crore).

During the reviewed period, net interest income increased to Rs 38,905 crore (from Rs 31,196 crore) and the net interest margin improved to 3.47%, up from 3.23%.

Gross advances stood at Rs 33,03,731 crore (compared to Rs 29,00,636 crore), while total deposits amounted to Rs 45,31,237 crore (as opposed to Rs 40,45,696 crore).

Gross non-performing assets (GNPA) as of June 30 were Rs 91,327.84 crore (in contrast to Rs 1,13,271.72 crore), with net NPA at Rs 22,995.37 crore (as opposed to Rs 28,257.92 crore).

SBI revealed that during the first quarter, it transferred three loan accounts with a principal outstanding amount of Rs 1,436.59 crore to an asset reconstruction company for a consideration of Rs 531 crore.

SBI's net interest income (NII) in Q1FY24 increased by 24.7% YoY to Rs 38,905 crore, and the domestic net interest margin rose by 24 basis points YoY to 3.47%. The state-owned bank's gross NPA reduced to 2.76% from 2.78% quarter-on-quarter (QoQ) and 3.9% YoY.

In absolute terms, the gross NPA decreased to Rs 91,327.84 crore from Rs 113,271.72 crore YoY. Provisions stood at Rs 2,501 crore, compared to Rs 4,392 crore YoY and Rs 3,316 crore QoQ.

SBI's capital adequacy ratio (Basel III) was recorded at 14.56%, a slight decrease from 14.68% sequentially. Earnings per share (EPS) increased to Rs 18.92 from Rs 18.71 QoQ.

The return on assets decreased by 1 basis point QoQ to 1.22%, while the debt-to-equity ratio also declined to 0.64 from 0.66 in Q4 of FY23.