Infographic: SBI Q1, Net profit falls by 6.7% on standalone basis due to loss in treasury

On Saturday State Bank of India reported a 1 per cent year-on-year (YoY) drop in net profit at Rs 7,325 crore compared with Rs 7,380 crore in the same quarter last year on a consolidated basis. Net interest income (NII) for the quarter rose 12.87 per cent YoY to Rs 31,196 crore compared with Rs 27,638 crore in the corresponding quarter last year.

While provisions made during the quarter fell both sequentially and on YoY basis, mark-to-market losses in treasury operations weighed on the numbers.

Net interest margin (NIM) for the quarter improved 8 basis points to 3.23 per cent from 3.15 per cent in the year-ago quarter. Asset quality improved, with gross non-performing assets ratio coming in at 3.91 per cent from 3.97 per cent YoY. Provisions fell 39 per cent sequentially to Rs 4,392.38 crore.

Slipages ratio stood at 1.38 per cent, down 109 basis points over 2.47 in the year-ago quarter.

“The MTM hit also had an adverse impact on bank’s ROA and ROE, which stand at 0.48 per cent and 10.09 per cent, respectively. Excluding trading income and MTM, core operating profit increased 14.39 per cent YoY, from Rs 16,873 crore in Q1FY22 to Rs 19,302 crore in Q1FY23,” the bank told BSE.