For India's largest lender, the June quarter profit beat the Bloomberg consensus estimate of ₹15,032 crore.
The substantial annual increase in other income was on a low base, a result of mark-to-market (MTM) loss in Q1 of FY23. Its net interest income— the difference between interest earned and expended— rose 25% to ₹38,905 crore.
The bank’s domestic net interest margin (NIM), a key indicator of profitability, however, contracted 37 basis points (bps) sequentially but showed an improvement of 24 bps from the previous year to 3.47%.
Like its peers, SBI is also seeing the impact of its deposits repricing, an effect that kicks in with a lag. The bank’s cost of domestic deposits increased 56 bps sequentially to 4.55%.
“NIM is always dynamic because the yield on advances will keep on changing and the cost of deposits will also keep on changing," said Dinesh Khara, chairman, SBI.
Bu hikaye Mint Mumbai dergisinin August 05, 2023 sayısından alınmıştır.
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Bu hikaye Mint Mumbai dergisinin August 05, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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