State Bank of India (SBI) Q2 PAT jumps 28% YoY

Public sector lender State Bank of India (SBI) on Friday reported a standalone net profit of Rs.18,331.44 crore for the quarter ended September 30, 2024 (Q2FY25), which was up by 27.92% over Rs.14,330.02 crore reported by the company in the year-ago period (Q2FY24). Net interest income (NII) for the quarter ended September, increased by 5.37% year-over-year to reach Rs.41,620 crore, up from Rs.39,500 crore during the corresponding period last year.

The operating profit surged by 51% year-on-year to Rs.29,294 crore in the period from July to September 2024, rising from Rs.19,417 crore during the same period last year.

The company announced in an exchange filing that the domestic net interest margin for the September quarter fell by 16 basis points to 3.27%, down from 3.43% a year earlier.

The gross advances in the second quarter increased by 15% year-on-year to reach Rs.39.2 lakh crore, whereas the growth in deposits was significantly lower at 9% year-on-year, amounting to Rs.51.17 lakh crore.

The asset quality of SBI showed improvement on a sequential basis. In absolute terms, Gross NPA was recorded at Rs.83,369 crore, down from ₹84,226 crore in June, while Net NPA decreased to Rs.20,294 crore from Rs.21,555 crore during the June quarter. For the September quarter, Gross NPA was at 2.13%, a decline from 2.21% in June, while Net NPA was at 0.53%, compared to 0.57% in the previous quarters.

Gross slippages for the quarter fell to Rs.4,951 crore, down from Rs.8,707 crore in the June quarter. Recoveries and upgrades also saw a sequential decline, decreasing to Rs.2,600 crore from Rs.3,666 crore in June.

The Capital Adequacy Ratio (CAR) was recorded at 13.76% at the conclusion of the second quarter, accompanied by a CET-1 ratio of 9.95% and a tier-1 ratio of 11.32%.

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Karnataka Orders Closure of all Government Accounts in two PSU banks due to Alleged Fraud

 

On Wednesday, the Karnataka government took a significant step by ordering all state departments to close their accounts in the State Bank of India (SBI) and Punjab National Bank (PNB). This decision comes as a response to allegations of misappropriation of funds.

The Karnataka government has directed all departments, public enterprises, corporations, local bodies, universities, and other institutions to close their accounts with SBI and PNB immediately. The order, issued in a circular dated August 12 by PC Jaffer, the Secretary of Budget & Resources in the Finance Department, and approved by Chief Minister Siddaramaiah, specifies that no further deposits or investments should be made in these banks.

The deadline for compliance with this directive is set for September 20.

The decision follows reports of two major fraudulent transactions:

Mismanagement of Fixed Deposit at PNB: A fixed deposit of Rs 25 crore was made at PNB’s Rajajinagar branch by the Karnataka Industrial Area Development Board on September 14, 2011. Despite the deposit term ending, PNB allegedly released only Rs 13 crore. Efforts to resolve this issue over the past decade have been unsuccessful.Fraudulent Use of Deposit at SBI: A Rs 10 crore fixed deposit made by the Karnataka State Pollution Control Board at the former State Bank of Mysore, now part of SBI, was allegedly misused to settle loans for a private company using forged documents. Attempts to recover this amount have also failed.

A senior government official told that the banks have claimed the matter is sub judice, but this has not stopped the State Public Accounts Committee from deciding to halt business with these banks. The government has issued the circular to withdraw deposits and is awaiting a response from the banks, which have requested additional time to address the issues.

This move comes amid a heated political climate in Karnataka, with the BJP-led opposition clashing with the Congress-ruled state government. The controversy has intensified following the exposure of an alleged fund transfer scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. A suicide note from Chandrashekhar P, the corporation’s accounts superintendent, revealed details of the alleged scam, adding fuel to the political fire.

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State Bank of India(SBI) Q1 Net profit rises marginally, NII up

 

Public sector lender State Bank of India (SBI) on Saturday reported a standalone net profit of Rs 17,035 crore for the quarter ended June 30, 2024, which was up by 0.9% over Rs 16,884.29 crore reported by the company in the year-ago period.

It was higher than the Street's estimates of Rs 16,786 crore.

The interest earned during the reported quarter stood at Rs 1,11,526 crore, which was higher by 16% versus Rs 95,975 crore reported by the lender in the corresponding quarter of the last financial year.

Interest expended by the bank in the April-June quarter stood at Rs 70,401 crore versus 57,041 crore in the year-ago period. This translates into a 23% YoY uptick.

The net interest income (NII) in Q1FY25 stood at Rs 41,125 crore, a jump of 5.71% over Rs 38,905 crore in Q1FY24.

The net interest margins for its entire operations were reported at 3.22% in Q1FY24, down by 11 bps from 3.33% in the year-ago period. As for the domestic operations, NIMs were reported at 3.35% in Q1FY25, which was down 12 bps over 3.47% in Q1FY24.

The operating profit for the state lender in the reported quarter was at Rs 26,449 crore, up by 4.55% on a YoY basis.

SBI's gross advances in the said quarter surged by 15.39% to Rs 38,12,087 crore in Q1FY25 versus Rs 33,03,731 crore in Q1FY24. Total deposits grew by 8.18% on a YoY basis to Rs 49,01,726 crore as against Rs 45,31,237 crore in the year ago period.

Credit cost increased by 16 bps for the state lender at 0.48% as against 0.32% in the corresponding quarter of the previous financial year.

The bank managed to lower its net non-performing assets (NNPAs) in the reported quarter by 14 bps to 0.57% over 0.71% in the year ago period.

Its PCR was also down by 41 bps in the quarter gone by at 74.41% versus 74.82% in the year ago period.

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State Bank of India(SBI) Q4 net profit rises 24%

State Bank of India (SBI), the country’s largest lender, on May 9 reported 24 percent rise in net profit at Rs 20,698 crore for the quarter ended March 31, 2024, aided by strong loan demand. SBI reported net profit of Rs 16,695 crore in the year-ago period.

The profit surpassed estimates of Rs 13,400 crore by analysts.

The public lender declared dividend of Rs 13.7o per share for FY24.

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At 1410 hours on May 9, SBI's shares were trading nearly 3 percent higher at Rs 834.40 apiece.

The bank's asset quality improved in March quarter. The gross non-performing asset (GNPA) of SBI came in at 2.24 percent as against 2.78 percent last year, while net NPA came in at 0.57 percent compared to 0.67 percent last year.

SBI loan growth remained strong in the March quarter and it clocked one of the best growth in over eight quarters. The bank also saw an impressive 36-quarter low in terms of ratio between gross and net NPAs.

SBI's interest earned grew 19 percent to Rs 1.11 lakh crore in the reported quarter as against Rs 92,951 crore a year ago.

"Credit growth is at 15.24 percent YoY with domestic advances growing by 16.26 percent YoY. Corporate advances and agri advances cross Rs 11 lakh crore and Rs 3 lakh crore, respectively," said SBI in a stock exchange filing.

In Q4FY24, total income rose to Rs 1.28 lakh crore from Rs 1.06 lakh crore in the year-ago period, while operating expenses grew at a relatively slower rate at Rs 30,276 crore from the year-ago period's Rs 29,732 crore.

The overall provisions nearly halved to Rs 1,609 crore from Rs 3,315 crore in the year-ago period.

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BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

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State Bank of India(SBI) Q3 FY24 Net profit falls 35%

 

State Bank of India (SBI) on Saturday reported a net profit of Rs 9,163 crore for Q3 quarter for FY24, which was 35 per cent less than Rs 14,205 crore clocked in the year-ago period.

The public lender though reported a standalone net profit of Rs 40,378 crores for the first nine months of FY24, which was 20.40 per cent up from Rs 33,538 crore in Q3 FY23

The bank said it has earned Rs 105,733.78 crore in interest income in Q3 FY24, which was up 22% from Rs 86,616.04 crore reported in the year-ago period. Of which, the bank paid Rs 66,918 crore in interests in the October-December quarter. The net interest income (NII) of the country's largest bank stood at Rs 39,815 crore, missing estimates of Rs 40,304 crore.

Whole Bank NIM for 9MFY24 decreased by 1 bp YoY to 3.28% while Domestic NIM for 9M FY24 decreased by 8 bps YoY to 3.41%.

The bank's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.64 per cent compared to 0.77 per cent last year. Bank’s returns on assets (RoA) for Q3FY24 stood at 0.62% while for 9MFY24 the RoA and returns on equity (ROE) stood at 0.94% and 19.47% respectively.

Gross NPA ratio at 2.42% improved by 72 bps YoY. Net NPA ratio at 0.64% improved by 13 bps YoY. PCR (Incl. AUCA) stands at 91.49%. Provision Coverage Ratio (PCR) at 74.17% declined by 195 bps YoY. Slippage Ratio for 9MFY24 improved by 5 bps YoY and stands at 0.67%. Slippage Ratio for Q3FY24 increased by 17 bps YoY and stands at 0.58%. Credit Cost for Q3FY24 remained flat YoY at 0.21%.The bank's operating profit for Q3 stood at Rs 20,336 crore.

Credit growth at 14.38% YoY with Domestic Advances growing by 14.47% YoY. Corporate Advances and SME Advances cross Rs 10 lakh crore and Rs 4 lakh crores. respectively. Foreign Offices’ Advances grew by 13.90% YoY. Domestic Advances growth driven by SME Advances (19.24% YoY) followed by Agri Advances which grew by 18.12% YoY. Retail Personal Advances and Corporate loans registered YoY growth of 15.28% and 10.71%, respectively. Whole Bank Deposits grew at 13.02% YoY, out of which CASA Deposit grew by 4.48% YoY. CASA ratio stands at 41.18% as on December 31, 2023.

The decline was as expected by analysts. Kotak Institutional Equities expected operating profit growth to be decline sharply by 18.3 per cent Y-o-Y to Rs 20,613 crore from Rs 25,219.3 crore earned in Q3FY23. 

"We are building net interest margin (NIM) to decline around 7 basis points Q-o-Q/19 bps Y-o-Y, but do see a possibility of stable performance given the structure of loan book and neglibile need for deposits to fund this growth. Operating expenses would be higher due to wage revision related costs (final settlement impact)," Kotak Institutional Equities said in its results preview report.

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State Bank of India(SBI) Q2 Net profit rises 9.13%

State Bank of India (SBI), India's largest lender, on Saturday reported a 9.13% growth in consolidated net profit for the September quarter to ₹16,099.58 crore. It had reported a consolidated net profit of ₹14,752 crore in the year-ago period and ₹18,356 crore in the June quarter.

On a standalone basis, it posted a net profit of ₹14,330.02 crore as against ₹13,264.52 crore in the year-ago period. The net interest income (NII) grew at 12.3% year-on-year.

The bank reported a total income of over ₹1.12 lakh crore for the quarter under review, up from ₹88,733 crore in the year-ago period.

From an asset quality perspective, its gross non-performing assets ratio was at 2.55% as of September 30, an improvement from the 3.52% in the year-ago period and the 2.76% in the first quarter of the current fiscal.

Its overall capital adequacy stood at 14.28% as of September 30.

SBI Chairman Dinesh Khara said, "The outlook for domestic activity is brightening even as corporation de-leverage and post strong bottomlines. The growth is expected to gain momentum for the rest of the year. On external front, CAD is modest with sufficient forex buffers insulating the economy."

Kaitav Shah, Hd-BFSI, Anand Rathi Instl Eq said, "The numbers broadly seem to be in line with what has been the expectation. We just have to look at what kind of growth SBI did. I think they generally deliver in line with what the credit growth for the system has been? NII growth at ₹39,500 crore is very much in line with our expectation. We will just await what is happening at the pre-provisioning operating profit level to get a better view on or a sense on what the numbers have been. We were any which ways expecting a benign asset quality for this quarter."

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State Bank of India(SBI) launches ‘Nation First Transit Card’ for digital fare payments

The State Bank of India, country’s largest lender, has launched the ‘Nation First Transit Card’ facilitate the seamless and convenient customer commuting experience and ensure easy digital ticketing fare payments in metro, buses, water ferries, parking, etc., through a single card.

In addition, individuals can also use this card for making retail and e-commerce payments.

“At SBI, we are constantly strive to make banking and everyday life simpler for our customers. The Nation First Transit Card powered by RuPay and National Common Mobility Card (NCMC) technology, is set to revolutionize the commuting experience and is aligned with the national vision of “One Nation One Card", Dinesh Kumar Khara, chairman, SBI said.

“We are proud to introduce a card that not only eases the lives of our customers but also contributes to the growth of our country," the SBI chairman added.

India’s largest lender said it is also implementing NCMC based ticketing solution in MMRC Metro Line 3 and Agra Metro, which is in the advanced stage of execution and will be available to the public very soon.

SBI entered NCMC programs with transit operators in 2019. As a part of these NCMC programs, SBI successfully launched the “City1 Card", “Nagpur Metro MAHA Card", “MUMBAI1 Card", “GoSmart Card" and “Singara Chennai Card" in Noida Metro, Nagpur Metro, MMRDA Metro Lines 2A & 7, Kanpur Metro and Chennai Metro respectively.

State Bank of India is the largest mortgage lender in the country. The home loan portfolio of the bank has crossed ₹6.53 lakh crore. As of June 2023, the bank has a deposit base of over ₹45.31 lakh crore with CASA ratio of 42.88 per cent and advances of more than ₹33 lakh crore. SBI commands a market share of 33.4% and 19.5% in home loans and auto loans respectively.

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