SBI Q4 Results: Net Profit Rises 81% YoY

Advances & Deposits

The bank’s total domestic advances rose 5.67% year-on-year to Rs 21.82 lakh crore. Retail advances stood at Rs 8.7 lakh crore, rising 16.47% from a year ago. In comparison, the domestic corporate loan book contracted 3% year-on-year to Rs 21.82 lakh crore. Including investment in corporate securities, the corporate book increased marginally.

The drop in the outstanding corporate loan book was largely because companies are not utilising available credit lines, the bank’s chairman said. Large projects where the bank has already sanctioned credit lines, did not take off due to the pandemic. However, as the situation normalises, these credit lines will get utilised and push up growth for the bank.

“Currently the working capital utilisation is at 70%, which means it is even lower for large corporates. The large corporate borrowers are also able to replace their bank dues by raising funds through the bond market,” Khara said.

In the retail segment, SBI is growing its gold loans portfolio, according to CS Setty managing director. As of March 31, the gold loan book, inclusive of agricultural and personal retail loan borrowers, stood at Rs 90,000 crore. “We see an opportunity to add another Rs 10,000 crore this financial year,” Setty said.

Overall, the bank is aiming for a 10% growth in its outstanding loan book in the current financial year, according to Khara.

Total domestic deposits for SBI rose 14.26% from a year ago to Rs 35.7 lakh crore. Current account, savings account deposits rose 16.73% year-on-year to Rs 16.47 lakh crore. Term deposits rose 12.23% from a year ago to Rs 19.23 lakh crore.

Shares of SBI were trading 1.3% higher after the results were announced, compared with a 1.28% gain in the benchmark Nifty 50.

(Corrects an earlier version that misstated profit growth)

Watch the interview with Dinesh Khara, chairman, SBI, here: