MUMBAI: State Bank of India (SBI) has reported a net profit of Rs 13,264 crore for the quarter ended September 2022—an increase of 74% over the Rs 7,627 crore in the corresponding quarter last year. This is the highest-ever quarterly net profit reported by the country’s largest bank.
SBI’s advances rose 20% year on year to Rs 30.3 lakh crore from Rs 25.3 lakh crore in September 2021. The demand for credit came from corporate loans as well as retail. Deposits grew 10% year on year to Rs 41.9 lakh crore from Rs 38 lakh crore during the same period. The bank’s net interest income grew 12.8% to Rs 35,183 crore. SBI’s home loan portfolio grew 14% to Rs 5.94 lakh crore and accounted for more than half its retail portfolio of Rs 10.7 lakh crore. Corporate loans grew 21% year on year to Rs 9.2 lakh crore.
Announcing the results, the bank’s chairman Dinesh Khara said that although bank credit has been growing twice as fast as deposits, SBI has a large base of deposits. “We have Rs 3.5 lakh crore, which was invested in liquid instruments when there was not enough opportunity to lend. We can now use this for funding credit growth,” said Khara.
Following the better-than-expected growth in credit, the bank has accelerated its loan growth target for this fiscal from 12% to 14-16%, he said.
During the quarter, the bank saw an improvement in its asset quality, with net non performing assets declining to 0.8% from 1% in June 2022 and 1.5% a year ago.
The bank said it acquired 62% of its savings account and 45% of its retail loans through its mobile app Yono. The share of alternate channels in total transactions increased to 96.8% from 95.1% a year ago.