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SBI shareholders will get good news as soon as the market opens on Monday. The bank made huge earnings in Q1

Sandy Verma | August 3, 2024 8:24 PM CST

SBI Q1 Results 2024. The country's largest bank, State Bank of India (SBI), has released its June quarter results. The bank's profit in this quarter was Rs 17,035 crore, which was Rs 16,885 crore in the same quarter last year and Rs 20,698 crore in the March quarter. SBI shares closed at Rs 848 this week.

Net interest income increased, but margin decreased

According to the information sent to the stock market, SBI's net profit increased by about 1% on an annual basis to Rs 17,035 crore. Operating profit increased by 4.55% to Rs 26,449 crore. Net interest income increased by 5.71% to Rs 41,125 crore. However, domestic net interest margin (NIM) fell by 12 basis points to 3.35% and the overall bank's NIM was 3.22%.

Decline in NPA and ROA

Talking about asset quality, SBI's gross NPA fell by 55 basis points to 2.21% and net NPA fell by 14 basis points to 0.57%. Provision coverage ratio stood at 74.41%. Capital Adequacy Ratio (CAR) stood at 13.86%. However, the bank's return on assets (ROA) fell from 1.22% to 1.10% on an annual basis, from 1.36% in the March quarter.

Growth in loan book, pressure in deposits

In terms of business, SBI's gross advances in the June quarter grew 15.39% year-on-year to Rs 38,12,087 crore. Domestic loan book grew 15.55%. Gross deposits grew 8.18% to Rs 49,01,726 crore. Current account savings account (CASA) deposits grew 2.59% and CASA ratio stood at 40.70%.

FAQs

1. What was SBI's Q1 profit?

SBI's Q1 profit stood at Rs 17,035 crore.

2. What is the Net Interest Margin (NIM) of SBI?

Domestic NIM stood at 3.35% and overall NIM stood at 3.22%.

3. How much improvement was there in gross NPA?

Gross NPA declined by 55 basis points to 2.21%.

4. How much did SBI's ROA decrease?

ROA declined from 1.22% to 1.10% on a YoY basis.

5. What was the gross advance growth of SBI?

Gross Advances recorded a year-on-year growth of 15.39%.

SBI's quarterly results give mixed signals, where there has been a marginal increase in profit, while net interest margin and ROA have declined. The loan book growth has been healthy, but some pressure has been seen in deposits.