|
State
Bank of India has reported 35% dip in the net profit
at Rs 9163.96 crore for the quarter ended December 2023 (Q3FY2024) on account
of provisions for wage revisions and employee pension benefits. The bank has
posted 5% growth in net interest income (NII), while the core fee income of the
bank improved 5% in Q3FY2024. The Net Interest Margin (NIM) of the bank eased to
3.22% in Q3FY2024 compared to 3.50% in the corresponding quarter of previous
year.
On business front, the bank as has posted 14% growth in business
with strong 14% surge in loan book. The asset quality of the bank has continued
to improve in Q3FY2024. Bank has improved the credit to deposit ratio to 75.3%
at end December 2023 from 74.4% at end December 2022. The CASA ratio of the
bank has declined to 39.5% at end December 2023 from 42.7% at end December
2022.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2024.
The fresh slippages of loans stood at Rs 5046 crore in Q3FY2024
compared with 4081 crore in previous quarter and Rs 3209 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 1798 crore, upgradations at Rs
3473 crore and the write-off of loans was at Rs 0 crore in Q3FY2024.
The standard restructured loan book of the bank declined to Rs
18880 crore end December 2023 compared to Rs 20854 crore a quarter ago.
Provision coverage ratio was steady at 91.49% at end December 2023
compared to 91.93% a quarter ago and 91.52% a year ago.
The capital adequacy ratio of the bank stood at 13.1% with Tier I
ratio at 10.6% at end December 2023.
The risk weighted assets of the bank has increased 16% YoY to Rs
3135528 crore end December 2023.
|
Asset Quality Indicators: State Bank of India
|
|
|
Dec/23
|
Sep/23
|
Jun/23
|
Mar/23
|
Dec/22
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
86748.81
|
86974.08
|
91327.84
|
90927.78
|
98346.50
|
0
|
-5
|
-12
|
|
Net NPA (Rs Crore)
|
22408.38
|
21352.40
|
22995.37
|
21466.64
|
23484.31
|
5
|
4
|
-5
|
|
% Gross NPA
|
2.42
|
2.55
|
2.76
|
2.78
|
3.14
|
-13
|
-36
|
-72
|
|
% Net NPA
|
0.64
|
0.64
|
0.71
|
0.67
|
0.77
|
0
|
-3
|
-13
|
|
% PCR
|
91.49
|
91.93
|
91.41
|
91.91
|
91.52
|
-44
|
-42
|
-3
|
|
% CRAR - Basel III
|
13.05
|
14.28
|
14.56
|
14.68
|
13.27
|
-123
|
-163
|
-22
|
|
% CRAR - Tier I - Basel III
|
10.58
|
11.78
|
11.97
|
12.06
|
10.80
|
-120
|
-148
|
-22
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of
the bank has increased 14% YoY to Rs 8346473 crore end December 2023, driven by
14% surge in advances to Rs 3584252 crore. Deposits rose 13% to Rs 4762221
crore at end December 2023.
CASA deposits ratio declines: The CASA
deposits of the bank increased 4% YoY to Rs 1881297 crore at end December 2023.
The current account deposits increased 10% to Rs 249538 crore, while saving
account deposits rose 4% to Rs 1631759 crore end December 2023. The CASA ratio eased
to 39.5% at end December 2023 compared to 42.7% at end December 2022, while fell
from 40.2% a quarter ago.
The term deposits have increased 11% to Rs 2686630 crore end
December 2023. Overseas deposits jumped 17% to Rs 194294 crore end December
2023.
Strong loan growth: Advances growth
was driven by retail loans rising 15% YoY to Rs 1296310 crore at end December
2023, while credit to agriculture increased 18% to Rs 291748 crore and MSME 19%
to Rs 418121 crore at end December 2023. The corporate credit moved up 11% to
Rs 1024094 crore end December 2023. The overseas credit has jumped 14% to Rs
553980 crore end December 2023.
Investment book of the bank rose 7% YoY to Rs 1634271 crore at end December 2023.
The AFS book fell 4% to Rs 559084 crore, while HTM book rose 14% to Rs 1072572
crore at end December 2023. The duration of the AFS investment portfolio stood
at 1.92 years end December 2023 compared with 1.92 years at end December 2022. Within
the domestic book, the SLR book moved up 9% to Rs 1350837 crore, while non SLR
book declined 3% to Rs 283434 crore at end December 2023.
Margins decline: The bank has
showed 85 bps YoY jump in cost of deposits to 4.75%, while yield on advances
increased 101 bps YoY to 8.88% in Q3FY2024. NIM has declined 28 bps YoY and 7
bps qoq to 3.22% in Q3FY2024.
Book value of the bank stood at Rs
382.3 per share at end December 2023, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 351.9 per share at end December
2023.
Quarterly Performance
NII growth eases as NIM declines: Bank has recorded 23% increase in the interest earned at Rs 106733.78
crore, while interest expenses jumped 38% to Rs 66918.05 crore in Q3FY2024. NII
improved 5% to Rs 39815.73 crore in the quarter ended December 2023.
Moderate growth in the core fee income: Bank has posted strong 5% growth in core fee income to Rs 6241
crore, while recoveries and other income rose 8% to Rs 1807 crore in Q3FY2024. However,
the forex income declined 2% to Rs 907 crore and the treasury income dipped 15%
to Rs 2505 crore. The overall non-interest income was flat yoy at Rs 11458.90
crore in the quarter ended December 2023.
Expenses ratio jumps: The operating
expenses of the bank increased 27% to Rs 30938.55 crore, as other expenses
moved up 21% to Rs 11576.73 crore and employee expenses increased 31% to Rs
19361.82 crore in Q3FY2024. Cost to income ratio galloped to 60.3% in Q3FY2024
compared with 49.1% in Q3FY2023, causing 19% decline in the Operating Profit to
Rs 20336.08 crore.
Provisions and contingencies decline: The bank has showed 88% decline in provisions to Rs 687.85 crore. The
standard asset provisions dipped 96% to Rs 181 crore, while the bank has
written back investment provisions of Rs 599 crore and other provisions of Rs 652
crore. The loan loss provisions rose 11% to Rs 1757 crore.
PBT rose 1% to Rs 61745.2 crore. However, the bank has created provisions
of Rs 7,100 crore on account of one-time increase in pension liabilities at
uniform rate of 50% and Dearness Relief (DR) Neutralization. Thus the PBT after
this exceptional expense item declined 36% to Rs 12548.23 crore.
Effective tax rate declined to 17.2% in Q3FY2024 from 27.0% in
Q3FY2023. Net Profit declined 35% YoY to Rs 9163.96 crore during quarter ended
December 2023.
Financial Performance 9MFY2024:
Bank has posted 20% increase in net profit to Rs 40378.27 crore in
the nine month ended December 2023 (9MFY2024). The net interest income
increased 13% to Rs 118220.64 crore, while non-interest income moved up 51% to
Rs 34312.91 crore, pushing up net total income by 20% to Rs 152533.55 crore in
9MFY2024. The operating expenses increased 29% to Rs 87483.92 crore, while
provision and contingencies declined 75% to Rs 3304.44 crore, allowing profit
before tax to increase 35% to Rs 61745.19 crore in 9MFY2024. PBT
after exceptional expense item of Rs 7100 crore rose 19% to Rs 54645.19 crore. The cost-to-income ratio rose to 57.4% in 9MFY2024 compared
to 53.5% in 9MFY2023. An effective tax rate declined to 23.1% in 9MFY2024
compared to 26.9% in 9MFY2023. The net profit has increased 20% to Rs 40378.27
crore in 9MFY2024.
Consolidated
quarterly performance:
On the
consolidated front, the bank has posted 29% decline in the net profit at Rs 11064.14
crore over 6% rise in NII at Rs 44776.40 crore. The other income increased 13% to
Rs 40203.30 crore, leading to 9% rise in net total income to Rs 84979.70 crore.
The operating expenses surged 22% to Rs 61189.62 crore, causing 14% decline in
the operating profit to Rs 23790.08 crore in the quarter ended September 2023.
The provisions dipped
77% to Rs 1445.25 crore, PBT rose 5% to Rs 22344.83 crore in Q2FY2024. PBT
after exceptional expense item of Rs 7100 crore declined 28% to Rs 15560.63
crore. The effective tax rate eased to 25.5% in
Q2FY2024 from 26.4% in Q2FY2023. Net profit declined 27% to Rs 11598.46 crore
before minority interest and share of associates. The Minority interest
increased 30% to Rs 534.32 crore, while the profit from associate companies
moved up 45% to Rs 315.80 crore. Net Profit declined 29% to Rs 11064.14 crore
for quarter ended September 2023.
Consolidated
Financial Performance 9MFY2024:
For the nine
months ended December 2023 (9MFY2024), Bank on consolidated basis has posted 22%
increase in net profit to Rs 45700.51 crore. The net interest income improved 14%
to Rs 132627.09 crore, while non-interest income moved up 29% to Rs 107941.41 crore
in 9MFY2024. The expense ratio increased 208 bps yoy to 68.9% in 9MFY2024. The
operating expenses jumped 24% to Rs 165766.89 crore, while provision and
contingencies dipped 63% to Rs 5313.44 crore in 9MFY2024. The profit before tax
improved 34% to Rs 69488.17 crore in 9MFY2024. The effective tax rate declined 83
bps yoy to 25.2%. Net profit advanced 22% to Rs 45700.51 crore in 9MFY2024.
|
State
Bank of India: Standalone Results
|
|
Particulars
|
2312
(3)
|
2212
(3)
|
Var %
|
2312
(9)
|
2212
(9)
|
Var %
|
2303
(12)
|
2203
(12)
|
Var %
|
|
Interest Earned
|
106733.78
|
86616.04
|
23
|
304088.03
|
239152.00
|
27
|
332103.06
|
275457.28
|
21
|
|
Interest Expended
|
66918.05
|
48547.42
|
38
|
185867.39
|
134704.02
|
38
|
187262.56
|
154749.70
|
21
|
|
Net Interest Income
|
39815.73
|
38068.62
|
5
|
118220.64
|
104447.98
|
13
|
144840.50
|
120707.58
|
20
|
|
Other Income
|
11458.90
|
11467.73
|
0
|
34312.91
|
22654.20
|
51
|
36615.60
|
40563.91
|
-10
|
|
Net Total Income
|
51274.63
|
49536.35
|
4
|
152533.55
|
127102.18
|
20
|
181456.10
|
161271.49
|
13
|
|
Operating Expenses
|
30938.55
|
24317.07
|
27
|
87483.92
|
68010.33
|
29
|
97743.13
|
85979.13
|
14
|
|
Operating Profits
|
20336.08
|
25219.28
|
-19
|
65049.63
|
59091.85
|
10
|
83712.97
|
75292.36
|
11
|
|
Provisions & Contingencies
|
687.85
|
5760.57
|
-88
|
3304.44
|
13191.62
|
-75
|
16507.33
|
24452.13
|
-32
|
|
Profit Before Tax
|
19648.23
|
19458.71
|
1
|
61745.19
|
45900.23
|
35
|
67205.64
|
50840.23
|
32
|
|
EO
|
-7100.00
|
0.00
|
-
|
-7100.00
|
0.00
|
-
|
0.00
|
-7418.39
|
-
|
|
PBT after EO
|
12548.23
|
19458.71
|
-36
|
54645.19
|
45900.23
|
19
|
67205.64
|
43421.84
|
55
|
|
Provision for tax
|
3384.27
|
5253.37
|
-36
|
14266.92
|
12362.30
|
15
|
16973.19
|
11745.87
|
45
|
|
PAT
|
9163.96
|
14205.34
|
-35
|
40378.27
|
33537.93
|
20
|
50232.45
|
31675.97
|
59
|
|
EPS*(Rs)
|
67.4
|
63.7
|
|
68.2
|
50.1
|
|
56.3
|
41.6
|
|
|
Adj BV (Rs)
|
351.9
|
300.1
|
|
351.9
|
300.1
|
|
305.1
|
247.6
|
|
|
*
Annualized on current equity of Rs 892.46 crore excluding EO and relevant tax. Face Value: Re 1, Figures in
Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
State Bank of India: Consolidated Results
|
|
Particulars
|
2312
(3)
|
2212
(3)
|
Var %
|
2312
(9)
|
2212
(9)
|
Var %
|
2303
(12)
|
2203
(12)
|
Var %
|
|
Interest Earned
|
112868.34
|
91517.66
|
23
|
321719.12
|
252761.39
|
27
|
350844.58
|
289972.69
|
21
|
|
Interest Expended
|
68091.94
|
49365.99
|
38
|
189092.03
|
136529.34
|
38
|
189980.81
|
156194.34
|
22
|
|
Net Interest Income
|
44776.40
|
42151.67
|
6
|
132627.09
|
116232.05
|
14
|
160863.77
|
133778.35
|
20
|
|
Other Income
|
40203.30
|
35701.31
|
13
|
107941.41
|
83764.36
|
29
|
122533.56
|
117000.40
|
5
|
|
Net Total Income
|
84979.70
|
77852.98
|
9
|
240568.50
|
199996.41
|
20
|
283397.33
|
250778.75
|
13
|
|
Operating Expenses
|
61189.62
|
50301.28
|
22
|
165766.89
|
133643.67
|
24
|
189814.48
|
166945.04
|
14
|
|
Operating Profits
|
23790.08
|
27551.70
|
-14
|
74801.61
|
66352.74
|
13
|
93582.85
|
83833.71
|
12
|
|
Provisions & Contingencies
|
1445.25
|
6196.30
|
-77
|
5313.44
|
14389.75
|
-63
|
18184.28
|
26676.69
|
-32
|
|
PBT
|
22344.83
|
21355.40
|
5
|
69488.17
|
51962.99
|
34
|
75398.57
|
57157.02
|
32
|
|
P&L of Associate Company
|
315.80
|
218.53
|
45
|
938.90
|
765.94
|
23
|
1191.45
|
827.01
|
44
|
|
PBT before EO
|
22660.63
|
21573.93
|
5
|
70427.07
|
52728.93
|
34
|
76590.02
|
57984.03
|
32
|
|
EO
|
-7100.00
|
0.00
|
-
|
-7100.00
|
0.00
|
-
|
0.00
|
-7418.39
|
-
|
|
PBT after EO
|
15560.63
|
21573.93
|
-28
|
63327.07
|
52728.93
|
20
|
76590.02
|
50565.64
|
51
|
|
Provisions for tax
|
3962.17
|
5685.75
|
-30
|
15986.39
|
13747.81
|
16
|
18840.13
|
13382.46
|
41
|
|
Net Profit before minority interest
|
11598.46
|
15888.18
|
-27
|
47340.68
|
38981.12
|
21
|
57749.89
|
37183.18
|
55
|
|
Minority Interest
|
534.32
|
410.96
|
30
|
1640.17
|
1426.79
|
15
|
2101.71
|
1809.30
|
16
|
|
Net profit
|
11064.14
|
15477.22
|
-29
|
45700.51
|
37554.33
|
22
|
55648.18
|
35373.88
|
57
|
|
EPS*(Rs)
|
73.3
|
69.4
|
|
76.2
|
56.1
|
|
62.4
|
45.7
|
|
|
Adj BV (Rs)
|
393.5
|
333.5
|
|
393.5
|
333.5
|
|
345.1
|
276.2
|
|
|
* Annualized on current equity of Rs 892.46 crore excluding EO and relevant tax. Face Value:
Rs 1, Figures in Rs crore,
|
|
Source: Capitaline Corporate Database
|
|