14-16% loan growth expected in FY23: SBI chief


The country’s largest lender, State Bank of India (SBI), on Saturday reported a 74 per cent rise in its after-tax standalone profit to Rs 13,265 crore in the quarter ending September 2022 compared to Rs 7,627 crore in the prior year quarter.

This was the highest quarterly net profit ever recorded by the lender, thanks to healthy growth in net interest income (NII) and falling loan loss provisions.

Net interest income, which is the difference between interest earned and interest spent, rose 12.83% to Rs 35,183 crore from Rs 31,184 crore last year. This growth was led by improved borrowing across all segments and strong asset quality, bank chairman Dinesh Khara told reporters.

The domestic net interest margin (NIM) improved 5 basis points (bps) to 3.55 percent.

On the asset quality front, the Gross Non-Earning Assets (GNPA) ratio for the July-September 2022 quarter improved to 3.52 percent from 4.9 percent. Net NPA decreased to 0.8 percent from 1.52 percent.

The improvement in asset quality was reflected in the bank’s cost of credit, which fell to 0.28 percent from 0.43 percent.

New slippages in the quarter stood at Rs 2,399 crore compared to Rs 4,176 crore in the second quarter of FY22.

Loan loss provisions fell 25.5 per cent to Rs 2,011 crore

of Rs 2,699 crore in the prior year quarter.

The bank saw healthy loan growth of 19.9 per cent, with corporate loans rising by 21.18 per cent and retail by 18.84 per cent. Khara expects credit growth of 14 to 16 percent in the current fiscal year.

“There is an improvement in capacity utilization and the type of demand that we have seen on the ground gives us confidence,” he said. The capital adequacy ratio (CAR) stood at 13.51 percent compared to 13.35 percent.

Khara said the bank continues to be very well capitalized and internal accumulations will be more than sufficient for it to handle normal business growth requirements.

Speaking about the international trade settlement in rupees, its managing director (international banking, global markets and technology), CS Setty, said that the lender has contacted its 250 corresponding banks for linkages but, so far, has not opened up. no special Vostro account.

“There are several banks that have come back to us to tie. We require regulatory approval here and they also require approval from their regulators. It’s all in the process,” Setty said, adding that the lender is going after him very seriously.

On July 12, the RBI had launched a mechanism to settle international trade in rupees “in order to promote the growth of world trade with an emphasis on India’s exports and support the growing interest of the world trading community in the rupee”.


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