NEW DELHI: The State Bank of India on Saturday reported a 73.93% increase in net profit for the second quarter ending September 2022 (Q2FY23), on account of improved lending and lower provision.The bank’s net profit stood at Rs 13,265 crore, highest-ever in a quarter and the operating profit grew from Rs 18,079 crore to Rs 21,120 crore, an increase of 16.82% (YoY). The operating profit for the first half of the current fiscal (H1) rose 36.81%.
The loan loss provisions were down by 25.5% (YoY). Provision coverage ratio (PCR) improved by 788 basis points (YoY) and capital adequacy ratio (CAR) stood at 13.51%, an increase of 16 basis points in the September quarter.
The bank’s net interest income (NII) stood at Rs 35,183, registering a 12.83% growth compared to the corresponding period last year. Net Interest margin stood at 3.5%, an increase of 5 basis points. Return-on-equity stood at 16.08% and NII rose 12.85% for the first half of the 2023-23 fiscal.
Domestic advances of SBI grew by 18.15% and foreign advances grew by 30.14% YoY. Corporate advances witnessed a 21.18% YoY growth. The advances to the retail sector grew by 18.84% YoY, while small and medium enterprises grew by 13.24% and the agricultural sector increased by 11%.
Dotal deposits increased by 9.99% on a yearly basis and CASA deposit ratio stood at 44.63% in Q2. The net non-performing asset ratio stood at 0.80%, falling below 1% and the gross NPA ratio was at 3.52%, down by 138 bps (YoY).
Meanwhile, State-owned Bank of Baroda on Saturday reported a jump of 59% in its net profit to Rs 3,313 crore for Q2FY23 on the back of a fall in bad loans and rise in interest income. The lender had posted a net profit of Rs 2,088 crore in the corresponding quarter of the previous fiscal.