SBI in its Q1 results for the fiscal year 2023 announced today reported a decline in net profit by 6.7% YoY to Rs. 6,068 crore. Net profit largely missed the street expectations as analysts polled by Bloomberg estimated net profit of Rs. 8392 crore.
In the same quarter last year, the largest state run lender reported a net profit of Rs. 6504 crore.
The decline in net profit at the bank is attributed to the acute fall in non-interest income due to mark to market losses on the investment book.
Net interest income or NII of the bank registered a growth of 13% YoY to Rs. 31,196 crore in Q1Fy23. Nevertheless, non-interest income eroded sharply by 80% and came in at Rs. 2312 crore after loss on investments stood at Rs. 6549 crore. Net interest margin or NIM that determines banks’ profitability came in at 3.23%, up 8 bps YoY, but declined 17 bps sequentially.
Provisions against loans also logged an increase of 31% sequentially to Rs. 4,268 crore during the review period.
On the asset quality front, SBI showed some improvement with Gross NPA at 3.91% at the end of June quarter, down 141 bps YoY and 6 bps QoQ. Likewise, Net NPA came in at 1% during the period, declining 77 bps YoY and 2 bps QoQ.
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