There has been an increase in the bank’s interest income. 31,196 crore net interest income for the quarter. 27,638 crore in the corresponding quarter last year. A year-on-year increase of 12.87 percent was recorded. SBI has the largest portfolio of fixed income securities like government securities. The jump in bond yields between April and June shows how big the losses in the bank’s trading book are. As the bond yield rises, their prices fall. Meanwhile, the non-interest income of the bank has decreased by Rs.2312. 11802 crore in the previous year.
The operating profit of the bank is Rs 12,753 crore. The bank’s operating profit for the first quarter of FY2022 was Rs 18,975 crore. This time there was a decline of 32.8 percent.
Chairman Dinesh Khara said the bank has taken measures to mitigate further losses from the increase in income.
SBI’s gross non-performing assets (Gross NPA) ratio declined by 141 bps year-on-year to 3.19 percent. Meanwhile, the net NPA ratio on a year-on-year basis has come down by 77 bps to 1 percent. Provision coverage ratio increased by 719 bps to 75.05 percent.
Retail personal advances (18.58 per cent p.a.) accounted for most of SBI’s domestic advances growth. Out of this, housing loan grew by 13.77 percent. The public sector bank’s corporate loan book grew by 10.57 percent. SME and agriculture loans recorded annual growth of 10.01 percent and 9.82 percent respectively.
Balance sheet growth
SBI has a balance sheet of fifty lakh crores. There has been a huge growth in terms of corporate and retail loans. The bank is making gains in this sector at a rapid pace. A growth of 14.9 percent has been recorded. It is considered a healthy growth.
Net interest margin (NIM) improved by 8 basis points to 3.23 percent. A basis point is one-hundredth of a percentage point. It can be understood that the net interest margin has continuously declined.
Growth in low-cost deposits helped lower the cost of funds as SBI’s loans earned more interest due to an increase in the bank’s borrowing rates during the quarter.
Current and savings account deposits increased by 6.5 per cent and formed 45.33 per cent of the total deposit book. Investments overall increased by 8.73 percent during the quarter.