State Bank of India (SBI) reported a 41.3% increase in net profit in the fourth quarter to ₹9,114 crore on the back of significant improvement in asset quality in the three months ended March 31.
For the financial year, the public lender’s net profit increased by 55.2% to ₹31,676 crore.
“Fiscal 22 was an extraordinary year,” President Dinesh Khara told a news conference. “It is encouraging that the bank was able to deliver reasonably good results in terms of business metrics, profitability and asset quality,” he added.
“We have also created sufficient contingency funds against the restructured pound to insulate our balance sheet from any future shocks,” Khara added. Return on equity at year-end was 13.92%, a 398 basis point improvement year-over-year and the bank was now targeting a return on equity of 15%, Mr. Khara said.
While fourth quarter domestic net interest margin increased 29 basis points to 3.4%, net interest income for the period increased 15.3% year over year. previous.
Gross advances for the quarter increased by 11% to ₹28,18,671 crore and the retail loan book exceeded ₹10 lakh crore. Total deposits increased by 10.1%.
In FY22, the bank had an exceptional item of ₹7,418 crore to be provisioned due to the change in family pension rules.
During the quarter, the bank’s loan loss provisions decreased by 67.1% to ₹3,262 crore. For FY22, provisions decreased by 48.3% to ₹14,087 crore from ₹27,244 crore in the previous year.
In the fourth quarter, the bank’s gross non-performing assets (GNPA) declined by 11.4% to ₹1,12,023 crore. Net NPA declined by 24.% to ₹27,966 crore.
SBI said it made a provision of ₹7,900 crore.
The bank said its capital adequacy ratio at the end of the fourth quarter was 13.83% and return on assets rose 19 basis points to 0.67%.
The recent increase in benchmark interest rates by the RBI would not impact the quality of the bank’s assets or lead to major tensions, Khara said.