SBI’s Q1Fy23 Net Profit Dips 6.7% YoY; Misses Street Estimates

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Business

oi-Roshni Agarwal

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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.

 SBI's Q1Fy23 Net Profit Dips 6.7% YoY; Misses Street Estimates

SBI’s Q1Fy23 Net Profit Dips 6.7% YoY; Misses Street Estimates

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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