SBI net profit surges 58% to Rs 50,232 crore in FY23

The country’s largest lender State Bank of India on Thursday reported the highest ever yearly profit of Rs 50,232 crore for the fiscal ended March 2023, registering a year-on-year growth of 58.58% on the back of robust jump in interest income.

For the January-March 2023 quarter, the company’s profit surged by 83% year-on-year to Rs 16,694 crore. Both quarterly and yearly profit numbers are the highest ever posted in the bank’s history.

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The bank’s net interest income (NII), the difference between interest earned and spent, surged by 29% to Rs 40,393 crore for the fourth quarter of 2022-23 as compared to Rs 31,198 crore recorded in the corresponding period of the previous year. For the full year 2022-23, the company’s net interest income rose by 19.99%.

Net interest margin (NIM) of SBI for the year 2022-23 increased by 22 basis points to 3.58%. Domestic NIM for the fourth quarter of 2022-23 increased by 44 basis points year-on-year to 3.84%.

The government-run bank recorded significant improvement in asset quality. SBI's gross non-performing assets declined to Rs 90,027 crore in 2022-23 from Rs 1.12 lakh crore in the previous year. The bank’s gross non-performing assets ratio declined from 3.97% in Q4 of 2021-22 to 2.78% in Q4 of 2022-23, the lowest in 10 years.

SBI’s net non-performing assets ratio declined to 0.67% in the quarter ended March 2023 from 1.02% registered in the corresponding period of last year.

The company’s board at its meeting held on Thursday approved a dividend of Rs 11.30 per equity share (1130%) for the financial year ended March 2023. The date of dividend payment is fixed on June 14.