State Bank of India (SBI), the largest bank in the country as per assets, has announced that its net profits jumped by 74 per cent this quarter.
The public sector bank said it has posted the highest ever quarterly net profit at Rs 13,265 crore, up from Rs 7,627 crore in the same quarter of the previous financial year.
Its operating profit for the July-September quarter was at Rs 21,120 crore, which is up by nearly 17 per cent on a year-on-year basis.
Net interest income
The bank’s net interest income rose 12.8 percent year-on-year to Rs 35,183 crore, up from Rs 31,184 crore in July-September 2021. The net interest income is the difference between interest earned and interest expended. The bank’s Net Interest margins (NIM) were at 3.55 per cent in the reporting quarter from 3.23 per cent in June and 3.50 percent in September last year.
As per its filing, the bank’s interest earned rose 15 per cent to Rs 79,859.59 crore, while the interest expended was Rs 44,676.15 crore.
Bad loans went down
The largest lender in the country reported that its gross non-performing assets (NPA) were 3.52 per cent of the total loan book, down from 4.90 per cent in Q2 FY22.
On a net basis, bad loans were 0.80 per cent of the loan book compared with 1.52 per cent in 2021, which is a healthy sign.
Robust loan and deposit growth
On the loan and deposit side, the bank stated its credit growth jumped nearly 20 per cent year-on-year with domestic advances growing by 18.15 per cent year-on-year. It reported spectacular growth in domestic advances due to corporate advances followed by retail personal loans.
Whole Bank Deposits grew nearly 10 per cent YoY, out of which CASA Deposit grew by 5.35 per cent. The CASA ratio stood at 44.63 per cent as on September-end.
