SBI's First Quarter: Navigating Growth and Challenges

SBI reported a 4.25% growth in consolidated net profit for April-June, impacted by higher loan loss provisions and lower core income growth. Chairman Dinesh Kumar Khara is confident of improved growth for the year, aiming for a Rs 1 lakh crore net profit by FY25. The bank is working to balance deposit growth, loan quality, and capital adequacy.

The State Bank of India (SBI) has reported a consolidated net profit growth of 4.25% in the April-June quarter, totaling Rs 19,325 crore, despite facing increased loan loss provisions and slower core income growth.

On a standalone basis, profit growth was nearly flat at 0.89%, amounting to Rs 17,035 crore. Chairman Dinesh Kumar Khara attributed the sluggish growth to usual first-quarter slowdowns and other 'distractions,' but remains optimistic that the bank will achieve its Rs 1 lakh crore net profit target for FY25.

Khara emphasized that SBI is focused on maintaining its net interest margins and balancing deposit growth, while also managing loan quality and capital adequacy. Corporate loans saw a 15% growth, whereas retail loans grew slower, below 14%.

(With inputs from agencies.)