Mumbai, May 3 (PTI) State Bank of India on Saturday recorded a decline of 8.34 percent in its consolidated net profit for the January-March quarter, which was affected by the fall in net interest margin, compared to Rs 21,384 crore a year ago.
Depending on the standalone, the net profit of the country’s largest lender fell to Rs 18,642 crore in the March quarter, increased by Rs 20,698 crore in the year ago.
Despite more than 12 percent debt hike due to low net interest margin, the main net interest income of the bank increased by 2.69 percent to Rs 42,775 crore. NIM recorded a decline of 32 basis points from year to year.
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The total income on a consolidated basis, however, increased by Rs 1,79,562 crore to Rs 1,64,914 crore in the final quarter of FY 201024-25 (FY25) to Rs 1,64,914 crore in the year ago.
SBI Chairman CS Setty said that NIMS (net interest margin) will be under pressure in the new financial year, especially with the fact that the RBI cuts the policy rate, giving the fact that 27 percent of its loan is associated with repo.
Without giving a target on NIMS, Setty said it would take up to 12-18 months to take policy rate action to translate the deposits for the bank, and insist that policy transmission would be fulfilled only when the cost of the costs of both property and liabilities.
Setty said that due to the one-closed items, the net profit has reduced which benefited the financial of the bank over the year and first period.
The bank is targeting 12-13 percent debt hike for the new fiscal, saying Setty said that the credit development will also affect tariff wars.
He said that companies would slow down on their investment plans due to uncertainties in the global economy, which will have a slow impact on credit growth for banks.
Currently, SBI has a corporate loan pipeline of Rs 3.4 lakh crore, which is equally divided between already approved loans, but yet future requirements have to be interacted and interacted.
Bank Managing Director Ashwini Kumar Tiwari said that the demand for credit is coming from infrastructure, renewable energy, data centers and commercial reality segments.
The other income for the bank increased to Rs 24,210 crore in the March Quarter of FY15, which increased by Rs 17,369 crore in the year ago.
During the reporting quarter, corporate debt growth was increased by 9 percent on the preparation made by the corporates, either to delay the balance sheet or as they raised new equity, Setty said, the retail individual credit increased by 11 percent, including 14 percent increase in home loans.
The bank increased unsafe individual debt by 0.49 percent in FY25, and Setty said that the bank would push the pedal forward on the product as it does not see any challenge on it.
On the asset quality front, gross non-performing property ratio improved by 1.82 percent, and Setty stated that this is the fifth consecutive year of improvement in number.
He said that the bank hopes that the quality of the asset would be benign for many and years as no stress is seen from the large-value corporate loans, and the ratio would be lower than the 2 percent level.
The bank said that the fresh slippery came to Rs 4,222 crore during the quarter during the quarter from SME, agriculture and individual loans portfolio, the bank said that Rs 572 crore loans have already been extended through payment in April.
The overall provisions shot from Rs 1,610 crore to Rs 6,441 crore over the year-old period, and Setty explained that a large part of the money set from one side was for aging.
The bank’s board in its meeting on Saturday approved a competent provision to increase the equity capital to Rs 25,000 crore, Setty said, it could support a loan hike up to Rs 8 lakh crore from the current buffers and does not require capital for commercial development.
On March 31, the total capital adequacy was 14.25 percent, with the core buffer 10.81 percent, lower than many banks of the system settist, with the bank the Supreme Court order on the Bhushan Shakti case, and said that the committee of the creditors is studying the order.
For the entire 2024–25 financial year, the bank recorded a 16 percent increase in standalone profit against Rs 61,077 crore in the previous year.
The bank’s board has declared a dividend of Rs 15.90 per equity share for FY 25.
Setty said that the bank would hire 18,000 people in FY 26, which is the largest number in a decade. It will include 13,400 clerks, 3,000 probationary officers and 1,600 expert officers, for roles like technology. Pti aa mr mr
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