Net interest income up 3% on year at â¹41,655 crore; board declares dividend of â¹13.70 per share for FY24 [View in browser]( [See all newsletters]( 10 May 2024 SBI posts record profit in Q4 on rise in income, leash on spend [State Bank of India]( (SBI) reported its highest standalone quarterly net profit at â¹20,698 crore in the fourth quarter due to robust growth in non-interest income, including treasury income, tight rein on operating expenses and write-back in standard asset provisions and other provisions. Indiaâs largest bank had reported a net profit of â¹16,695 crore in the year-ago quarter. Net profit in the reporting quarter is up about 24 per cent year-on-year (y-o-y) and about 126 per cent sequentially. The bankâs central board, at its meeting on Thursday, declared a dividend of â¹13.70 per equity share of â¹1 each fully paid up for FY24. Net interest income/NII (difference between interest earned and interest expended) was up 3.13 per cent y-o-y at â¹41,655 crore (â¹40,393 crore). Total non-interest income, comprising fee income (loan processing charges, miscellaneous fee income, etc), forex income, profit or loss on sale/revaluation of investments, etc, rose about 24 per cent at â¹17,369 crore (â¹13,961 crore). Operating income (NII plus non-interest income) growth of 8.59 per cent y-o-y (â¹59,024 crore), outpaced operating expenses (employee cost and other operating expense) growth of 1.83 per cent y-o-y (â¹30,277 crore), resulting in the operating profit going up 17 per cent to â¹28,747 crore. Loan growth and NPAs SBI Chairman Dinesh Kumar Khara expects FY24âs loan growth to be sustained in FY25 and net interest margin maintained at the current level. In FY25, the lender expects 14-16 per cent growth in loans (15.24 per cent in FY24) and 12-13 per cent in deposits (11.13 per cent). He observed that the bank has a sanctions pipeline of â¹4-lakh crore, with private sector entities accounting for 75 per cent of these sanctions and public sector accounting for the rest. Surplus holding of statutory liquidity ratio securities stood at â¹3.5-lakh crore. While the current capital adequacy ratio (14.28 per cent as at March-end 2024) is adequate to support up to â¹7-lakh crore of balance sheet growth, the bank is open to raise equity capital, Khara said. Net interest margin (whole bank) declined to 3.28 per cent in the reporting quarter from 3.37 per cent a year ago. Provisions for employees declined about 28 per cent y-o-y in the reporting quarter to â¹5,225 crore. While loan loss provisions shot up 156 per cent to â¹3,294 crore, the bank received write-back from standard assets provisions (â¹370 crore) as well as from other provisions (â¹1,306 crore). Asset quality improved, with gross non-performing assets (NPAs) declining to 2.24 per cent of gross advances as at March-end 2024 against 2.42 per cent as at December-end 2023. NNPAs nudged lower to 0.57 per cent of net advances from 0.64 per cent. As on March-end 2024, gross advances increased by 15.24 per cent y-o-y to â¹37,67,535 crore, with robust growth across all segments. RAM (retail, agriculture and MSME) and corporate advances crossed â¹20-lakh crore and â¹11-lakh crore, respectively. Total deposits rose 11.13 per cent to â¹49,16,077 crore. Low cost current account, savings account (CASA) deposits declined to 41.11 per cent of domestic deposits against 43.80 per cent. You Might Also Like [Freshworks bets big on AI with management rejig]( [Info-tech]( [Freshworks bets big on AI with management rejig]( [Indices crack on FPI selling, election uncertainty]( [Markets]( [Indices crack on FPI selling, election uncertainty]( [PNBâs net profit jumps over two-fold to â¹8,329 crore in FY24 on improved asset quality, lower credit cost]( [Money & Banking]( [PNBâs net profit jumps over two-fold to â¹8,329 crore in FY24 on improved asset quality, lower credit cost]( [L&T eyes acquisitions for semiconductor business]( [Companies]( [L&T eyes acquisitions for semiconductor business]( Stay informed Subscribe to businessline to stay up-to-date with in-depth business news from India [arrow]( Copyright @ 2024, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please try [here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails go [here](