Financial Update-22

DAY-22

Price update

Name

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High

Low

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HDFC

1,829.00

1,836.00

1,805.85

1,828.20

Bank of Baroda

230.98

233.75

226.86

228.53

SBI

772.1

778.6

767

771.5

 

News update

RBI Likely to Continue Rate Cuts in April, Says Bank of America

Bank of America (BofA) anticipates that the Reserve Bank of India (RBI) will lower the repo rate to 6% during the upcoming Monetary Policy Committee (MPC) meeting in April. The firm projects a 25 basis points (bps) cut, bringing the rate down to 6%.

BofA cited stable yet non-inflationary growth and subdued price pressures as key factors providing the RBI with sufficient room to proceed with its rate-cutting cycle. Additionally, slower growth and easing inflation further support the likelihood of a rate cut.

While BofA maintains a cautious outlook, it noted that the RBI remains slightly more optimistic about the country's GDP growth. The central bank has forecasted a growth rate of 6.7%, which is marginally higher than BofA’s own projection.

Today, we’ll explore the financial performance of SBI. I'll analyze how the company is performing, identify the operational factors supporting its performance, and present a simplified summary in layman's terms

Financial Performance:

Net Profit and Operating Profit: Net profit increased by 21.59% to 61,076.62 Crore in FY2024 from 50,232.45 Crore in FY2023. Operating Profit of Bank for FY2024 increased by 12.05% to 93,797.18 Crore from 83,712.97 Crore in FY2023.


 Net Interest Income:                                                                                                                             Net interest income increased by 10.38% to 1, 59,875.83 Crore in FY2024 from 1, 44,840.50 Crore in FY2023.                                                                                                                                                  Total interest income increased from 3, 32,103.06 Crore in FY2023 to 4, 15,130.66 Crore in FY2024 registering a growth of 25%.                                                                                                                  Total interest expenses increased by 36.31% from 1, 87,262.56 Crore in FY2023 to 2, 55,254.83 Crore in FY2024.   




Operating Expenses: Operating expenses (excluding exceptional item) of the Bank increased by 20.48% to 1,17,760.81 Crore in FY2024 from 97,743.13 Crore in FY2023.

Provisions and Contingencies: Total provision and contingency is decreased by 23.48% from 33,480.52 Crore in FY2023 to 25,620.56 Crore in FY2024. The Provisioning to Gross Non-Performing Assets ratio (including AUCA) of the Bank as on 31st March 2024 is 91.89% (Previous Year 91.91%).


Assets and Liabilities:

ASSETS:
Total assets of your Bank have increased by 12.01% to 61,79,693.94 Crore as at the end of March 2024 from 55,16,978.53 Crore at the end of March 2023.                                                                      Net loan portfolio increased by 15.78% to 37,03,970.85 Crore from 31,99,269.30 Crore. Investments increased by 6.43% to 16,71,339.66 Crore from 15,70,366.23 Crore. The major portion of investments in the domestic market was in government securities.


LIABIITIES:                                                                                                                                    Aggregate liabilities (excluding capital and reserves) rose by 11.81% to 58,02,447.41 Crore as on 31st March 2024 from 51,89,370.08 Crore as on 31st March 2023.                                                      Deposits rose by 11.13% and stood at 49,16,076.77 Crore as on 31st March 2024 against 44,23,777.78 Crore as on 31st March 2023.                                                                              Borrowings increased by 21.18% to 5,97,560.91 Crore as at the end of March 2024 from 4,93,135.15 Crore as at the end of March 2023.



Reserves and Surplus:                                                                                                                            An amount of 18,322.99 Crore (as against 15,069.74 Crore in FY2023) was transferred to Statutory Reserves.                                                                                                                                                  An amount of 326.21 Crore (as against 232.81 Crore in FY2023) was transferred to Capital Reserves.                                                                                                                                     Drawdown of 749.08 Crore in FY2024 from (as against transfer of 4,575.43 Crore in FY2023) to Investment Fluctuation Reserve.                                                                                                             An amount of 3,142.84 Crore (as against Nil in FY2023) was transferred to the Investment Reserve.

Dividend: Your Bank has declared a dividend of 13.70 per share @ 1370% face value 1rs for the year ended 31st March 2024.


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