Net Profit
INR 16,884 crore
+178.25% YoY
Highest ever quarterly net profit, driven by strong NII and lower provisions.
SBIN
Diversified
03 Aug 2023
Sbin Ltd — Q1 FY24
SBI reported its highest-ever quarterly net profit of INR 16,884 crore, up 178% YoY, driven by strong NII growth of 24.71% YoY and a sharp improvement in asset quality.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
SBI reported its highest-ever quarterly net profit of INR 16,884 crore, up 178% YoY, driven by strong NII growth of 24.71% YoY and a sharp improvement in asset quality. Domestic NIM expanded 24 bps YoY to 3.47%, while credit cost improved to 32 bps. Domestic advances grew 15.08% YoY, led by retail (16.46%) and SME (18.27%). The bank maintains a robust pipeline of INR 3.5 trillion in corporate loans, with INR 1.2 trillion already sanctioned. Management guided for 14-15% credit growth in FY24 and expects NIM to sustain around 3.47%. Key risks include potential margin compression from deposit repricing and global economic headwinds affecting the international book.
SBI ने अपना अब तक का सबसे बड़ा तिमाही मुनाफा 16,884 करोड़ रुपये दर्ज किया, जो पिछले साल की समान तिमाही से 178% अधिक है। यह वृद्धि ब्याज आय (NII) में 24.71% की बढ़ोतरी और कर्ज वसूली में सुधार के कारण हुई। ब्याज मार्जिन (NIM) 3.47% हो गया, जो पिछले साल से 0.24% अधिक है। कर्ज देने की लागत घटकर 0.32% रह गई। देश में कर्ज 15.08% बढ़ा, खासकर खुदरा (16.46%) और छोटे-मध्यम उद्योगों (18.27%) में। बैंक के पास 3.5 लाख करोड़ रुपये के कॉरपोरेट कर्ज का मजबूत पाइपलाइन है, जिसमें से 1.2 लाख करोड़ पहले ही मंजूर हो चुके हैं। प्रबंधन ने चालू वित्त वर्ष में 14-15% कर्ज वृद्धि और 3.47% के आसपास ब्याज मार्जिन बने रहने का अनुमान जताया है। मुख्य जोखिमों में जमा पर ब्याज बढ़ने से मार्जिन पर दबाव और वैश्विक आर्थिक अनिश्चितता शामिल है।
Key Numbers
Domestic NIM
3.47%
+24 bps YoY
Net interest margin improved YoY, though down 27 bps sequentially due to one-offs.
Gross NPA Ratio
2.76%
-115 bps YoY
Lowest in over 10 years, reflecting sustained improvement in asset quality.
Corporate Loan Pipeline
INR 3.5 trillion
N/A
Includes INR 1.2 trillion sanctioned and INR 2.3 trillion in pipeline, supporting growth.
Management Guidance
Credit growth of 14-15% in FY24
Management expects domestic advances to grow 14-15% in FY24, supported by robust pipeline and broad-based demand.
Management guidance growthNIM to sustain around 3.47%
Chairman stated effort to retain domestic NIM at 3.47% for the full year, despite sequential volatility.
Management guidance marginsCost-to-income ratio improvement via digital and productivity
Management aims to reduce cost-to-income ratio by shoring up income and improving staff productivity through digital sourcing and SBOSS.
Management guidance marginsAdd ~300 branches in current year
Bank plans to add about 300 branches in FY24, focusing on potential areas, alongside digital expansion.
Management guidance expansionKey Risks
Margin compression from deposit repricing
Sequential NIM contraction of 27 bps raises concerns; management attributes to one-offs but analysts flag structural pressure.
medium · analyst_questionGlobal economic headwinds impacting international book
Management is cautious on international growth due to global challenges, which could limit earnings diversification.
medium · management_commentaryWage revision cost overhang
Provisions for wage revision at INR 500 crore/month are building; final liability not crystallized, posing uncertainty.
medium · management_commentaryCompetition from HDFC Bank merger
Analyst raised concern about competitive pressure post-merger; management downplayed citing scale and low attrition.
low · analyst_questionNotable Quotes
I'm pleased to announce that for the fourth quarter and running, we have posted our highest ever quarterly profit of INR 16,884 crore.
I expect that we should be having 3.47, would be our effort to retain this kind of a NIM.
Our effort is going to be the CASA in the real sense of the word, lowest possible cost of resource.
Frequently Asked Questions
What was Sbin's revenue in Q1 FY24?
Sbin reported revenue of — in Q1 FY24, representing a — change compared to the same quarter last year.
What guidance did Sbin management give for FY25?
Credit growth of 14-15% in FY24: Management expects domestic advances to grow 14-15% in FY24, supported by robust pipeline and broad-based demand. NIM to sustain around 3.47%: Chairman stated effort to retain domestic NIM at 3.47% for the full year, despite sequential volatility. Cost-to-income ratio improvement via digital and productivity: Management aims to reduce cost-to-income ratio by shoring up income and improving staff productivity through digital sourcing and SBOSS. Add ~300 branches in current year: Bank plans to add about 300 branches in FY24, focusing on potential areas, alongside digital expansion.
What are the key risks for Sbin in FY25?
Key risks include Margin compression from deposit repricing — Sequential NIM contraction of 27 bps raises concerns; management attributes to one-offs but analysts flag structural pressure.; Global economic headwinds impacting international book — Management is cautious on international growth due to global challenges, which could limit earnings diversification.; Wage revision cost overhang — Provisions for wage revision at INR 500 crore/month are building; final liability not crystallized, posing uncertainty.; Competition from HDFC Bank merger — Analyst raised concern about competitive pressure post-merger; management downplayed citing scale and low attrition..
Did Sbin meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Sbin Q1 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.