State Bank of India registers net profit of Rs 61,077cr for fiscal year 2024
State Bank of India (SBI) concluded the fiscal year 2024 with a remarkable financial performance, reporting a net profit of ₹61,077 crores, a significant growth of 21.59% year-over-year (YoY). This increase includes adjustments for wage settlements and an exceptional item totaling ₹7,100 crores. For the fourth quarter alone, SBI’s net profit soared by 23.98% to ₹20,698 crores.
Operational Efficiency and Earnings
The bank’s operating profit also saw substantial growth, with a 12.05% increase YoY, reaching ₹93,797 crores for FY24. The operating profit for Q4 grew by 16.76% YoY to ₹28,748 crores. These figures underscore SBI’s operational efficiency and robust earnings capability.
Balance Sheet and Credit Expansion
SBI’s balance sheet expanded significantly with credit growth at 15.24% YoY. Domestic advances grew by 16.26%, led by significant contributions from Small and Medium Enterprises (SMEs), which increased by 20.53%. Agricultural advances surpassed ₹3 lakh crores, demonstrating SBI’s commitment to supporting key sectors of the economy.
Asset Quality and Risk Management
The bank continued to improve its asset quality, with the Gross Non-Performing Assets (NPA) ratio improving by 54 basis points (bps) YoY to 2.24%. The Net NPA ratio also improved by 10 bps to 0.57%. These improvements reflect SBI’s effective risk management strategies.
Increased Utilization of Alternate Channels
The share of alternate channels in total transactions increased to approximately 97.8% in FY24 from 96.9% in FY23, indicating a shift towards digital banking solutions.
SBI’s financial results for FY24 reflect a stable financial condition and a strategic approach to growth, particularly in digital banking and SMEs. For those analyzing banking sector trends, these results suggest a strong performance despite economic uncertainties, making SBI a key player to watch in the coming fiscal year.