SBI Q2 Results: Net Profit Soars 28% to ₹18,331 Crores, NPA Improves to 4.14%
Key Highlights:
*- SBI's net profit surged by 28% to ₹18,331 crores in the second quarter of FY23.
- Gross NPA improved significantly by 4.14%.
- Total advances grew by 10.7% to reach ₹31.40 lakh crores.
Strong Financial Performance
State Bank of India (SBI), India's largest public sector bank, has reported robust financial performance during the second quarter of FY23.
The bank's net profit witnessed a significant increase of 28% to reach ₹18,331 crores, compared to ₹14,240 crores in the corresponding quarter of the previous year. This growth was primarily driven by an increase in net interest income, supported by a robust loan growth and healthy NIMs.
Asset Quality Improves
SBI has made notable progress in improving its asset quality. The bank's gross NPA ratio has reduced by 4.14% to 3.90%, a significant improvement from 8.04% in Q2 FY22.
Net NPA also declined to 0.89% from 1.59% in the previous year, reflecting the bank's effective NPA management strategies.
Loan Growth Momentum
SBI's total advances have grown by 10.7% year-on-year to reach ₹31.40 lakh crores, driven by healthy growth in corporate and retail loans.
The bank has maintained a diversified loan portfolio, with sectors like infrastructure, manufacturing, and services contributing significantly to the growth.
Deposits and CASA
SBI's total deposits increased by 9.8% to ₹44.81 lakh crores, supported by a rise in both demand and time deposits.
The bank's CASA ratio, which represents low-cost deposits, has improved to 45.6%, reflecting its strong liquidity position.
Outlook and Conclusion
SBI's Q2 results indicate the bank's strong financial position and its commitment to improving asset quality. The bank's robust loan growth, low NPAs, and healthy CASA ratio position it well for continued growth in the future.
SBI remains optimistic about the Indian economy's prospects and will continue to focus on delivering value to its customers and stakeholders.
