How did you find the latest quarterly results of SBI for the Mar-22 quarter?
Answer
Answer
For the fourth quarter ended March 2022, SBI reported 4.5% increase in revenues at Rs108,035 crore. The surge in revenues was largely driven by retail banking, treasury and insurance while the revenues from corporate banking were lower yoy. Interestingly, it was wholesale banking that saw almost 3-fold jump in EBIT. Net interest income (NII) was up 15.26% yoy in Q4 at Rs31,198 crore while NIM expanded by 29 bps at 3.40%.
State Bank of India
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income
₹ 1,08,035
₹ 1,03,431
4.45%
₹ 1,04,528
3.35%
Operating Profit
₹ 21,967
₹ 21,178
3.72%
₹ 20,592
6.68%
Net Profit
₹ 9,549
₹ 6,126
55.89%
₹ 9,555
-0.06%
Diluted EPS
₹ 10.70
₹ 6.86
₹ 10.71
Operating Margins
20.33%
20.48%
19.70%
Net Margins
8.84%
5.92%
9.14%
Gross NPA Ratio
3.97%
4.98%
4.50%
Net NPA Ratio
1.02%
1.50%
1.34%
ROA (Not Annualized)
0.74%
0.58%
0.71%
Capital Adequacy
13.83%
13.74%
13.23%
Net profits for the March 2022 quarter were up 55.9% at Rs9,549 crore for SBI. What triggered this growth in the net profits? Retail and wholesale advances grew by 10-11% in the quarter while the retail portfolio crossing Rs10 trillion. Total deposits grew 10.06% yoy, with CASA growing 7.78%. CASA deposits now account for 45.28% of total deposits. However, the biggest driver of the 29 bps boost to profits was NIMs and lower provisions.
During the quarter, the provision coverage ratio improved to 75.06% while slippage ratio was subdued at 0.43%. On cost front, the credit cost was at 0.49% while the cost to income ratio fell 29 bps to 53.31%. As a result, the net profit margins of SBI improved from 5.92% to 8.84% in Q4FY22 compared to the year ago quarter. However, net margins were lower by 30 bps on a sequential basis. Provisions fell sharply in the fourth quarter.