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State
Bank of India has reported robust 24% growth in net
profit at Rs 20698.35 crore for the quarter ended March 2024 (Q4FY2024). The
bank has posted 3% growth in net interest income (NII), while the core fee
income of the bank improved 9% in Q4FY2024. The Net Interest Margin (NIM) of
the bank was stable sequentially at 3.28% in Q4FY2024, while eased from 3.37%
in the corresponding quarter of previous year.
On business front, the bank as has posted 13% growth in business
with strong 15% surge in loan book. The asset quality of the bank has continued
to improve in Q4FY2024. Bank has raised the credit to deposit ratio to 76.6% at
end March 2024 from 73.9% at end March 2023. The CASA ratio of the bank has
declined to 39.5% at end March 2024 from 42.1% at end March 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q4FY2024.
The fresh slippages of loans stood at Rs 3984 crore in Q4FY2024
compared with 5046 crore in previous quarter and Rs 3458 crore in the
corresponding quarter last year.
The recoveries and upgrades of NPAs was at Rs 2052 crore and the
write-off of loans was at Rs 4404 crore in Q4FY2024.
The standard restructured loan book of the bank stood at Rs 17279
crore end March 2024 compared to Rs 18880 crore a quarter ago.
Provision coverage ratio was steady at 91.89% at end March 2024
compared to 91.49% a quarter ago and 91.91% a year ago.
The capital adequacy ratio of the bank stood at 14.3% with Tier I
ratio at 11.9% at end March 2024.
The risk weighted assets of the bank has increased 16% YoY to Rs
3222092 crore end March 2024,
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Asset Quality Indicators: State Bank of India
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|
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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84276.33
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86748.81
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86974.08
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91327.84
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90927.78
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-3
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-7
|
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Net NPA (Rs Crore)
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21051.08
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22408.38
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21352.40
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22995.37
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21466.64
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-6
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-2
|
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% Gross NPA
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2.24
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2.42
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2.55
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2.76
|
2.78
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-18
|
-54
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% Net NPA
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0.57
|
0.64
|
0.64
|
0.71
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0.67
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-7
|
-10
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% PCR
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91.89
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91.49
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91.93
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91.41
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91.91
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40
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-2
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% CRAR - Basel III
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14.28
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13.05
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14.28
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14.56
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14.68
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123
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-40
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% CRAR - Tier I - Basel III
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11.93
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10.58
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11.78
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11.97
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12.06
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135
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-13
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|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The business of
the bank has increased 13% YoY to Rs 8683612 crore end March 2024, driven by
15% surge in advances to Rs 3767535 crore. Deposits rose 11% to Rs 4916077
crore at end March 2024.
CASA deposits ratio declines: The CASA
deposits of the bank increased 4% YoY to Rs 1942026 crore at end March 2024.
The current account deposits increased 2% to Rs 287073 crore, while saving
account deposits moved up 5% to Rs 1654953 crore end March 2024. The CASA ratio
declined to 39.5% at end March 2024 compared to 42.1% at end March 2023, while it
was steady from 39.5% a quarter ago. The term deposits have increased 9% to Rs
2782310 crore end March 2024. Overseas deposits have increased 13% to Rs 191741
crore end March 2024.
Strong loan growth: Advances growth
was driven by retail loans rising 15% YoY to Rs 1352265 crore at end March
2024, while credit to agriculture increased 18% to Rs 304944 crore and MSME 21%
to Rs 433037 crore at end March 2024. The corporate credit has jumped 16% to Rs
1138202 crore end March 2024. The overseas credit rose 9% to Rs 539086 crore
end March 2024.
Investment book of the bank rose 6% YoY to Rs 1614852 crore at end March 2024.
The SLR book moved up 10% to Rs 1365749 crore, while non SLR book declined 12%
to Rs 249103 crore at end March 2024. The AFS book dipped 9% to Rs 516591 crore,
while HTM book rose 14% to Rs 1091640 crore at end March 2024.
Margins steady qoq, ease yoy: The bank
has showed 82 bps YoY jump in cost of deposits to 4.81%, while yield on
advances increased 81 bps YoY to 8.91% in Q4FY2024. Thus, the NIM has fell 9 bps
YoY, while remained steady qoq at 3.28% in Q4FY2024.
Branch expansion: The bank has
added 48 branches and reduced 1143 ATMs in Q4FY2024, taking overall tally to
22542 branches and 63580 ATM`s end March 2024.
Book value of the bank stood at Rs
391.8 per share at end March 2024, while the adjusted book value (net of NNPA
and 10% of restructured advances) was Rs 363.4 per share at end March 2024.
Quarterly Performance
Moderate NII growth: Bank has
recorded 19% increase in the interest earned at Rs 111042.63 crore, while
interest expenses increased 32% to Rs 69387.44 crore in Q4FY2024. NII improved
3% to Rs 41655.19 crore in the quarter ended March 2024.
Healthy growth in the core fee income: Bank has posted 9% growth in core fee income to Rs 8724 crore,
while the recoveries and other income jumped 62% to Rs 4957 crore and the
treasury income jumped 92% to Rs 3463 crore, supporting 24% jump in the overall
non-interest income to Rs 17369.25 crore in the quarter ended March 2024. However,
the forex income declined 79% to Rs 225 crore.
Expenses ratio improves: The operating
expenses of the bank increased 2% to Rs 30276.89 crore, as other expenses moved
up 15% to Rs 13928.79 crore, while employee expenses declined 7% to Rs 16348.1
crore in Q4FY2024. Cost to income ratio improved to 51.3% in Q4FY2024 compared
with 54.7% in Q4FY2023, helping the Operating Profit to increase 17% to Rs
28747.55 crore.
Provisions and contingencies decline: The bank has showed 51% decline in provisions to Rs 1609.78 crore.
The loan loss provisions jumped 158% to Rs 3297 crore, while the bank has written back investment
provisions of Rs 8 crore, standard asset provisions of Rs 370 crore and other
provisions of Rs 1306 crore.
Effective tax rate rose to 23.7% in Q4FY2024 from 21.6% in
Q4FY2023. Net Profit rose by 24% YoY to Rs 20698.35 crore during quarter ended
March 2024.
Financial Performance FY2024:
Bank has posted 22% increase in net profit to Rs 61076.62 crore in
the year ended March 2024 (FY2024). The net interest income increased 10% to Rs
159875.83 crore, while non-interest income moved up 41% to Rs 51682.16 crore,
pushing up net total income by 17% to Rs 211557.99 crore in FY2024. The
operating expenses increased 20% to Rs 117760.81 crore, while provision and
contingencies dipped 70% to Rs 4914.22 crore, allowing profit before tax to
increase 32% to Rs 88882.96 crore in FY2024. The cost-to-income ratio rose to
55.7% in FY2024 compared to 53.9% in FY2023. An effective tax rate declined to
23.3% in FY2024 compared to 25.3% in FY2023. The net profit has increased 22%
to Rs 61076.62 crore in FY2024.
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State
Bank of India: Standalone Results
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Particulars
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2403
(3)
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2303
(3)
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Var %
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2403
(12)
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2303
(12)
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Var %
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Interest Earned
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111042.63
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92951.06
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19
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415130.66
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332103.06
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25
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Interest Expended
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69387.44
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52558.55
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32
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255254.83
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187262.56
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36
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Net Interest Income
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41655.19
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40392.51
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3
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159875.83
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144840.50
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10
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Other Income
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17369.25
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13961.40
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24
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51682.16
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36615.60
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41
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Net Total Income
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59024.44
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54353.91
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9
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211557.99
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181456.10
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17
|
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Operating Expenses
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30276.89
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29732.80
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2
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117760.81
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97743.13
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20
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Operating Profits
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28747.55
|
24621.11
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17
|
93797.18
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83712.97
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12
|
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Provisions & Contingencies
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1609.78
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3315.71
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-51
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4914.22
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16507.33
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-70
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Profit Before Tax
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27137.77
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21305.40
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27
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88882.96
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67205.64
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32
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EO
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0.00
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0.00
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-
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-7100.00
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0.00
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-
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PBT after EO
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27137.77
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21305.40
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27
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81782.96
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67205.64
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22
|
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Provision for tax
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6439.42
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4610.89
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40
|
20706.34
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16973.19
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22
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PAT
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20698.35
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16694.51
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24
|
61076.62
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50232.45
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22
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EPS*(Rs)
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92.8
|
74.8
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|
74.4
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56.3
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Adj BV (Rs)
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363.4
|
305.1
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363.4
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305.1
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*
Annualized on current equity of Rs 892.46 crore. Face Value: Re 1, Figures in
Rs crore
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Source:
Capitaline Corporate Database
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