SBI Q4 net rises 41% to ₹9,114 cr. as asset quality improves
The Hindu
State-run lender’s annual profit surges to ₹31,676 crore
State Bank of India (SBI) reported a 41.3% jump in fourth-quarter net profit at ₹9,114 crore on the back of a significant improvement in asset quality during the three months ended March 31.
For the financial year, the state-run lender’s net profit grew 55.2% to ₹31,676 crore.
“FY22 was an extraordinary year,” Chairman Dinesh Khara said at a press conference. “It is heartening that the bank has been able to deliver reasonably good outcome in business, profitability and asset quality parameters,” he added.
“We have also created sufficient contingency funds against the restructured book to insulate our balance sheet from any future shock,” Mr. Khara added. The return on equity as at the end of the fiscal stood at 13.92%, a 398 basis points improvement year-on-year and the bank was now targeting 15% return on equity, Mr. Khara said.
While domestic net interest margin in the fourth quarter increased 29 bps to 3.4%, the net interest income for the period rose by 15.3% from the year-earlier period.
Gross advances for the quarter rose 11% to ₹28,18,671 crore and the retail loan portfolio crossed ₹10 lakh crore. The total deposits grew 10.1%.
In FY22, the bank had an exceptional item of ₹7,418 crore towards provision on account of change in family pension rules.