NEW DELHI: State Bank of India, the country’s largest bank, on Saturday reported a 6.7% year-on-year (YoY) fall in net profit to Rs 6,068 crore in the first quarter of FY23 due to mark-to-market losses. On a sequential basis, the net profit declined by one-third. In the January-March quarter, the state-owned bank had posted a net profit of Rs 9,113 crore.
Though interest income of the bank rose 10.85% year-on-year and 2.75% quarter-on-quarter to Rs 72,676 crore. The net interest income, which is interest income less interest expenses, also posted double-digit growth (12.87%) to Rs 31,196 crore. The domestic net interest margin (NIM) during the first quarter improved by 8 bps YoY to 3.23%.
The net interest margin is a key profitability indicator of banks. A higher NIM means the bank is earning more profits from its assets (loans and advances). The bank in a statement said that the MTM losses also had an adverse impact on the bank’s Return on Assets and Return on Equities, which stand at 0.48% and 10.09%, respectively.