Big bank SBI has become the country’s most profitable corporate with Rs 14,752 crore of consolidated net income in the second quarter of FY23, beating Reliance Industries having net earnings of Rs 13,656 crore.
On a standalone basis too, with Rs 13,256 crore of net profit, the nation’s largest lender has beaten the Mukesh Ambani firm which remained the most profitable corporate for decades, by a wider margin as Reliance took a hit of Rs 4,039 crore in windfall tax on its exports during the quarter.
The net income of Reliance includes Rs 4,729 crore from Jio Platforms and Rs 4,404 crore from the retail business, both pre-tax earnings, which was marginally down from Rs 13,680 crore in the year-ago period.
On the other hand, SBI’s standalone net soared 74 percent to Rs 13,256 crore in the July-September quarter, making this the best-ever quarterly numbers for the bank and beating all other usually more profitable companies by a wider margin.
SBI chairman Dinesh Kumar Khara said that had the bank booked treasury profits in the quarter, net income would have been much higher. He did not quantify by how much, though.
Unlike all other banks, the chairman said the bank has had notional gains on its treasury investments, which has a Rs 2.85-lakh-crore of additional exposure than the mandated 19 percent in SLR or statutory liquidity ratio. The Reserve Bank mandates all banks to invest 19 percent of their total deposits in central government securities. SBI consolidated net soared 66 percent during the period under review, which was only Rs 8,890 crore in the year-ago period. The total income of the SBI group also rose to Rs 1,14,782 crore in the quarter from Rs 1,01,143.26 crore in the year-ago period.
On a first-half basis, however, Reliance continues to be the most profitable firm with Rs 31,611 crore in net as against SBI’s Rs 22,077 crore. Similarly, on an income basis too, Reliance leads with total revenue of Rs 253,497 crore (traditionally Indian Oil and ONGC are the largest in terms of top-line), as against SBI’s Rs 1,14,782 crore for the period under review.