SBI’s net profit for FY22 jumps by 55% to over Rs 31,500 crore

New Delhi: The yearly net profit for India’s largest bank, the State Bank of India (SBI), recorded a sharp jump of 55.19 percent in the last financial year to Rs 31,676 crores, the bank said in a statement. In the fourth quarter of the last financial year, the January-March 2022 period, the SBI maintained the profitability streak as its quarterly profit grew by 41.28% to Rs 9,114 crore, which is the highest ever quarterly profit for the state-owned bank.

The return on equity (RoE) increased by nearly 4 percent to reach 13.92 percent at the end of the financial year which saw two waves of Covid-19 pandemic in the country, in April-June last year and December-January 2022 period. While the SBI's net interest on margin (NIM) in the fourth quarter increased by 29 basis points on a year-on-year basis to reach 3.4 percent, the net interest income (NII) of the bank registered an increase of over 15 percent in the fourth quarter on yearly basis.

According to a statement sent by the Bank to ETV Bharat, the operating profit of the bank registered a growth of 5.22 percent in the FY 2021-22 to reach Rs 75,292 crore, while the operating profit for the last quarter stands at Rs 19,717 crore.

Home loan and retail loans

In a major development, the SBI’s retail portfolio crossed the psychologically important milestone of Rs 10 lakh crore last year as the bank's retail personal advances registered a growth of over 15 percent during the last fiscal. While the SBI’s total advances (loans given by the bank) registered an annual growth of 11 percent last year, domestic loans registered a growth of 10.27 percent, and foreign advances registered a growth of 15.42 percent last year.

Due to a pick up in the housing market, the SBI’s home loan segment registered a growth of over 11 percent in the last fiscal despite the two Covid waves hitting the country that depressed the real estate market significantly. Home loans account for nearly one-fourth of the SBI’s domestic loan profile. On the other hand, the corporate loans sanctioned by the bank also registered a healthy growth of 11.15 percent during the last quarter as the Indian economy was coming out of the supply disruptions caused by the third Covid wave fuelled by the highly contagious Omicron variant of SarS-CoV-2 virus.

Deposits

According to the statement, the total deposits of the State Bank of India, registered a growth of over 10% last year while saving deposits registered a growth of 10.45%. Similarly, the term deposits, which are basically fixed deposits (FDs) of varying maturity, also registered a healthy growth of 11.54% last year.

NPAs

Despite the Covid period, the State Bank also succeeded in bringing down its non-performing assets (NPAs), also known as bad loans, last year. The gross NPA ratio of the SBI came down by over 1 percent to 3.97 percent, while the net NPA ratio declined by nearly half a percent (48 basis points) to 1.02% in the last fiscal.