Solution

The profit growth was mainly due to improvement in its net interest margins and a sharp decline in loan loss provisions. SBI reported its highest-ever quarterly net profit of Rs 9,114 crore for the January-March quarter (Q4FY22), rising 41.28% compared with the same period last year. The bank also reported its highest-ever yearly net profit of Rs 31,676 crore in FY22, which was up 55 per cent from FY21. The board of directors recommended a dividend of Rs 7.1 per equity share (710%) for 2021-22. The lender’s net interest income (NII) expanded by 15.26% to Rs 31,198 crore in Q4FY22 from Rs 27,067 crore in Q4FY21. The Net Interest Margin (NIM) for domestic operations improved to 3.4% for Q4FY22 from 3.11% in Q4FY21. The bank’s non-interest income declined by 26.77 per cent year on year (YoY) to Rs 11,880 crore in Q4FY22. Advances increased by 11 per cent to Rs 28.18 trillion at the end of March 2022. Domestic retail loans expanded by 15.11 per cent YoY to Rs 10.02 trillion. The domestic corporate credit rose by 6.35 per cent to Rs 8.70 trillion. The asset quality profile improved with gross non-performing assets (NPAs) declining to 3.97 per cent as of March 31, 2022, from 4.98 per cent in March 2021. Its net NPA declined to 1.02 per cent in March 2022, down from 1.5 per cent a year ago.