New Delhi, Aug 9 (IANS): It is not often that another Indian company gets to pip Reliance in the profitability sweepstakes. But, in the June 2023 quarter i.e., Q1FY24, the State Bank of India (SBI) has reported profits than Reliance Industries, 5paisa.com reported.

For the quarter, Q1FY24, Reliance had reported net profits of Rs 16,011 crore while SBI had reported net profits of Rs 18,537 crore, a full 15.8 per cent higher than the profits reported by Reliance Industries.

It is not just the latest quarter. Even if you look at the four rolling quarters from September 2022 to June 2023, then Reliance Industries has reported net profits of Rs 64,758 crore while the 4 quarter rolling net profits of SBI is 3.25 per cent higher at Rs 66,860 crore, the report said.

Incidentally, this is the first time in more than a decade that SBI has reported higher profits than Reliance Industries in 4 rolling quarters combined, the report said.

The last time it happened was way back in the fiscal year 2011-12. Just about 3-4 years back, PSU banks were struggling with tepid growth in top line, high levels of NPAs and low capital adequacy. Things have changed drastically in the last few years.

Multiple rounds of capital infusion by the government have helped to better capitalize the public sector banks. A focus on retail has helped the public sector banks to improve their financial performance. What has been the outcome. SBI has been consistently showing growth in net interest income (NII), one of the most important measures in the banking industry, the report said.

Secondly, the net interest margins (NIM) have expanded sharply for most of the PSBs in the last few years. Above all, consistent provisions and a focus on recoveries has reduced the gross NPAs of PSBs, cut the net NPA levels to below the 1% mark on an average and also sharply reduced the quarterly provisions. That has sharply improved the provisions coverage ratio, the report said.