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Wednesday, May 25, 2022

SBI Q4 net soars 41.2%; rate hike to positively impact margins: Khara

The board has recommended a dividend of Rs 7.10 per share or 710 per cent on the face value for the financial year ended March 31, 2022.

By: ENS Economic Bureau | New Delhi |
Updated: May 14, 2022 12:59:16 am
A man checks his mobile phones in front of State Bank of India (SBI) branch in Kolkata, India. (REUTERS/File Photo)

State Bank of India (SBI), India’s largest lender, on Friday reported a 41.28 per cent jump in its standalone net profit at Rs 9,113.53 crore for the fourth quarter ended March 31, 2022, as against a net profit of Rs 6,450.75 crore in the year-ago period.

The net profit for FY22 rose by 55.19 per cent year-on-year (y-o-y) to Rs 31,676 crore. The bank’s net interest income (NII) for the quarter increased by 15.3 per cent at Rs 31,198 crore, from Rs 27,067 crore. Domestic net interest margin (NIM) increased by 29 bps at 3.4 per cent. SBI Chairman Dinesh Khara said the gradual rate hikes by the Reserve Bank of India will have a positive impact. “We have got the advantage because loans are getting repriced. Deposits … they go up with a lag. I expect that it should have a positive impact on the margins of the bank going forward,” Khara said.

SBI shares fell 3.76 per cent to Rs 445.05 on the BSE on Friday.

The bank’s advances grew by 11 per cent. Domestic advances growth stood at 10.27 per cent, primarily driven by growth in retail personal advances (15.11 per cent) and foreign office advances grew by 15.42 per cent. Retail portfolio crossed Rs 10 lakh crore. Home loans, which constitute around 23 per cent of lender’s domestic advances, has grown by 11.49 per cent. Moreover, corporate loans also registered growth of 11.15 per cent quarter-on-quarter.

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Khara said the bank aims to maintain the current credit growth even in the next financial year. The bank had reported a credit growth of 11.6 per cent on-year in the January-March quarter and has a visibility of corporate loans worth Rs 4.6 lakh crore.

He said the bank also has no plans to make YONO, its mobile banking application, into a digital entity. “We would rather build the muscle in the bank and create value for all our stakeholders…,” he said. Asset quality improved with gross non-performing assets (NPAs) declining to Rs 1,12,023 crore (3.97 per cent of advances) as of March, as against Rs 1,26,389 crore (4.98 per cent) a year ago.

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