The Indian Express (Delhi Edition)
SBI’S net profit rises marginally in first qtr
STATE BANK of India, the country’s largest lender, reported a 0.89 percent increase in net profit to Rs 17,035.16 crore for the first quarter ended June of FY 25, compared to Rs 16,884.29 crore in the same period last year. On a sequential basis, net profit fell by 17.69 per cent from the March quarter of FY24.
The bank’ s central board approved raising up to Rs 25,000 crore through Basel IIIcompliant Additional Tier 1 Bonds and Tier 2 Bonds, in rupees and/ or US dollars, from Indian and/ or overseas investors during FY25.
Total income rose to Rs 122,687 crore in the latest June
quarter, up from Rs 108,038 cr ore a year ago. SB I’ s gross non- performing assets ( NPA) ratio stood at 2.21 per cent as of June 30, compared to 2.24 percent as of March 31, and 2.76 per cent on June 30, 2023.
In absolute terms, gross NPAS were Rs 84,226.04 crore as of June 30, down from Rs 84,276.33 cr ore as of March 2024 and Rs 91,327.84 crore in June 2023.
Deposits increased 8.18 per cent year- on- year to Rs 49.01 lakhcro re, up from Rs 45.31 lakh crore a year ago. However, deposits fell marginally by 0.29 per cent sequentially from Rs 49.16 lakh crore in March 2024.
SBI Chairman Dinesh Khara said that the current phase of credit growth out pacing deposits is temporary.
“We have seen that when alternative options are available, people have gone to markets but bank deposits remain the channelling source. We had a similar situation in 2007 when loans outpaced deposits, but it was a temporary phenomenon which we should be able to navigate with our investment book,” he added.
Slippages amounted to Rs 7,903 crore during the quarter.
“We do not have any challenges on NPAS… out of over Rs 7,900 crore of slippages in the first quarter we have recovered Rs 4,600 crore after June 2024. Part of the increase in provisions are because of aging provisions for standard assets which are rising because our advances are growing,” Khara said.
The bank reported a credit growth of 15.39 per cent to Rs 38.12 lakhcro re during the quarter. Retail advances grew by 13.60 per cent to Rs 13.6 8 lakh crore, corporate loans by 15.92 per cent to Rs 11.38 lakh crore, and SME loans by 19.87 per cent to Rs 4.43 lakh crore.