|
State
Bank of India has reported strong 28% growth in net
profit at Rs 18331.44 crore for the quarter ended September 2024 (Q2FY2025). The
bank has posted 5% growth in net interest income (NII), while the core fee
income of the bank also improved 5% in Q2FY2025. The Net Interest Margin (NIM)
of the bank eased to 3.14% in Q2FY2025 compared to 3.31% in the corresponding
quarter of previous year.
On business front, the bank as has posted 12% growth in business
with strong 15% surge in loan book. The asset quality of the bank has continued
to improve in Q2FY2025. Bank has raised the credit to deposit ratio to 76.6% at
end September 2024 from 72.7% at end September 2023. CASA ratio of the bank has
declined to 38.4% at end September 2024 from 40.2% at end September 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q2FY2025.
The fresh slippages of loans stood at Rs 4951 crore in Q2FY2025
compared with 8707 crore in previous quarter and Rs 4081 crore in the
corresponding quarter last year.
The recoveries and upgrades of NPAs stood at Rs 2600 crore and the
write-off of loans was at Rs 3208 crore in Q2FY2025.
The standard restructured loan book of the bank stood at Rs 14830 crore
end September 2024 compared to Rs 16015 crore a quarter ago.
Provision coverage ratio increased to 92.21% at end September 2024
compared to 91.76% a quarter ago and 91.93% a year ago.
The capital adequacy ratio of the bank stood at 13.8% with Tier I
ratio at 11.3% at end September 2024.
The risk weighted assets of the bank has increased 19% YoY to Rs 3424388
crore end September 2024,
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Asset Quality Indicators: State Bank of India
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|
|
Sep/24
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Jun/24
|
Mar/24
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Dec/23
|
Sep/23
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Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
83369.23
|
84226.04
|
84276.33
|
86748.81
|
86974.08
|
-1
|
-1
|
-4
|
|
Net NPA (Rs Crore)
|
20294.32
|
21554.69
|
21051.08
|
22408.38
|
21352.40
|
-6
|
-4
|
-5
|
|
% Gross NPA
|
2.13
|
2.21
|
2.24
|
2.42
|
2.55
|
-8
|
-11
|
-42
|
|
% Net NPA
|
0.53
|
0.57
|
0.57
|
0.64
|
0.64
|
-4
|
-4
|
-11
|
|
% PCR
|
92.21
|
91.76
|
91.89
|
91.49
|
91.93
|
45
|
32
|
28
|
|
% CRAR - Basel III
|
13.76
|
13.86
|
14.28
|
13.05
|
14.28
|
-10
|
-52
|
-52
|
|
% CRAR - Tier I - Basel III
|
11.32
|
11.78
|
11.93
|
10.58
|
11.78
|
-46
|
-61
|
-46
|
|
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 12% YoY to Rs 9038004 crore end September 2024, driven by 15%
surge in advances to Rs 3920719 crore. Deposits rose 9% to Rs 5117285 crore at
end September 2024.
CASA deposits ratio declines: The CASA
deposits of the bank increased 4% YoY to Rs 1965899 crore at end September
2024. The current account deposits increased 10% to Rs 278398 crore, while saving
account deposits rose 3% to Rs 1687501 crore end September 2024. The CASA ratio
declined to 38.4% at end September 2024 compared to 40.2% at end September
2023, while eased from 39.1% a quarter ago. The term deposits increased 13% to
Rs 2944629 crore end September 2024. Overseas deposits rose 11% to Rs 206757 crore
end September 2024.
Strong loan growth: Advances growth
was driven by retail loans rising 12% YoY to Rs 1396624 crore at end September
2024, while credit to agriculture increased 18% to Rs 322247 crore and MSME 17%
to Rs 456491 crore at end September 2024. The corporate credit has also jumped 18%
to Rs 1157171 crore end September 2024. The overseas credit has rose 12% to Rs 588185
crore end September 2024.
Investment book of the bank declined 3% YoY to Rs 1598761 crore at end September
2024. The SLR book fell 4% to Rs 1310905 crore, while non SLR book rose 2% to
Rs 287856 crore at end September 2024. The AFS book dipped 54% to Rs 262836 crore,
while HTM book rose 14% to Rs 1207065 crore at end September 2024. The duration
of the AFS investment portfolio stood at 1.98 years end September 2024 compared
with 1.91 years at end September 2023.
Margins ease: The bank has showed 38 bps
YoY jump in cost of deposits to 5.03%, while yield on advances rose mere 1 bps
YoY to 8.87% in Q2FY2025. Thus, the NIM has declined 17 bps YoY and 8 bps qoq
to 3.14% in Q2FY2025.
Book value of the bank stood at Rs 439.2
per share at end September 2024, while the adjusted book value (net of NNPA and
10% of restructured advances) was Rs 412.3 per share at end September 2024.
Quarterly Performance
NII growth ease as NIM moderates: Bank has recorded 12% increase in the interest earned at Rs 113870.56
crore, while interest expenses increased 17% to Rs 72251.02 crore in Q2FY2025. NII
rose 5% to Rs 41619.54 crore in the quarter ended September 2024.
Strong treasury income boosts non-interest income: Bank has posted 5% growth in core fee income to Rs 6834 crore, while
the recoveries and other income jumped 39% to Rs 2685 crore. Further, the
treasury income surged 130% to Rs 4641 crore and forex income zoomed 273% to Rs
1111 crore. leading to 42% jump in the overall non-interest income to Rs 15270.55
crore in the quarter ended September 2024.
Expenses ratio improves: The operating
expenses of the bank declined 11% to Rs 27596.35 crore, as employee expenses dipped
22% to Rs 14807.35 crore in Q2FY2025. Other expenses moved up 7% to Rs 12789 crore,
Cost to income ratio improved to 48.5% in Q2FY2025 compared with 61.4% in
Q2FY2024, helping the Operating Profit to increase 51% to Rs 29293.74 crore.
Provisions and contingencies decline: The bank has showed 3809% surge in provisions to Rs 4505.73 crore.
The loan loss provisions jumped 100% to Rs 3631 crore, while standard asset
provisions rebounded to Rs 274 crore and other provisions to Rs 603 crore. However,
the bank reversed investment provisions of Rs 2 crore in Q2FY25.
Effective tax rate was steady at 26.0% in Q2FY2025 from 25.8%
in Q2FY2024. Net Profit rose by 28% YoY to Rs 18331.44 crore during quarter
ended September 2024.
Financial Performance H1FY2025:
Bank has posted 13% increase in net profit to Rs 35366.61 crore in
the half year ended September 2024 (H1FY2025). The net interest income
increased 6% to Rs 82745.00 crore, while non-interest income moved up 16% to Rs
26432.42 crore, pushing up net total income by 8% to Rs 109177.42 crore in
H1FY2025. The operating expenses declined 6% to Rs 53435.09 crore, while
provision and contingencies galloped 204% to Rs 7955.15 crore, allowing profit
before tax to increase 14% to Rs 47787.18 crore in H1FY2025. The cost-to-income
ratio improved to 48.9% in H1FY2025 compared to 55.8% in H1FY2024. An effective
tax rate was steady at 26.0% in H1FY2025 compared to 25.9% in H1FY2024. The net
profit has increased 13% to Rs 35366.61 crore in H1FY2025.
|
State
Bank of India: Standalone Results
|
|
Particulars
|
2409
(3)
|
2309
(3)
|
Var %
|
2409
(6)
|
2309
(6)
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Var %
|
2403
(12)
|
2303
(12)
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Var %
|
|
Interest Earned
|
113870.56
|
101378.80
|
12
|
225396.55
|
197354.25
|
14
|
415130.66
|
332103.06
|
25
|
|
Interest Expended
|
72251.02
|
61878.84
|
17
|
142651.55
|
118949.34
|
20
|
255254.83
|
187262.56
|
36
|
|
Net Interest Income
|
41619.54
|
39499.96
|
5
|
82745.00
|
78404.91
|
6
|
159875.83
|
144840.50
|
10
|
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Other Income
|
15270.55
|
10790.63
|
42
|
26432.42
|
22854.01
|
16
|
51682.16
|
36615.60
|
41
|
|
Net Total Income
|
56890.09
|
50290.59
|
13
|
109177.42
|
101258.92
|
8
|
211557.99
|
181456.10
|
17
|
|
Operating Expenses
|
27596.35
|
30873.97
|
-11
|
53435.09
|
56545.37
|
-6
|
117760.81
|
97743.13
|
20
|
|
Operating Profits
|
29293.74
|
19416.62
|
51
|
55742.33
|
44713.55
|
25
|
93797.18
|
83712.97
|
12
|
|
Provisions & Contingencies
|
4505.73
|
115.28
|
3809
|
7955.15
|
2616.59
|
204
|
4914.22
|
16507.33
|
-70
|
|
Profit Before Tax
|
24788.01
|
19301.34
|
28
|
47787.18
|
42096.96
|
14
|
88882.96
|
67205.64
|
32
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
-7100.00
|
0.00
|
-
|
|
PBT after EO
|
24788.01
|
19301.34
|
28
|
47787.18
|
42096.96
|
14
|
81782.96
|
67205.64
|
22
|
|
Provision for tax
|
6456.57
|
4971.32
|
30
|
12420.57
|
10882.65
|
14
|
20706.34
|
16973.19
|
22
|
|
PAT
|
18331.44
|
14330.02
|
28
|
35366.61
|
31214.31
|
13
|
61076.62
|
50232.45
|
22
|
|
EPS*(Rs)
|
82.2
|
64.2
|
|
79.3
|
70.0
|
|
74.4
|
56.3
|
|
|
Adj BV (Rs)
|
412.3
|
341.6
|
|
412.3
|
341.6
|
|
363.4
|
305.1
|
|
|
*
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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