SBI Q3 results: State Bank of India (SBI) on Saturday reported a 62.26 percent year-over-year (YoY) increase in independent net profit of Rs 8,431.88 crore compared to Rs 5,196.22 crore in the corresponding quarter last year. The sharp increase in the lender’s earnings had fallen to a 32.6 percent year-on-year decline in provisions to Rs 6,974 crore. While provisions declined year on year, loan loss provisions increased in the quarter to Rs 3,096 crore from Rs 2,290 crore in the same period a year ago. Overall, the COVID-19 related provisions amounted to Rs 6,183 crore, according to the SBI.
Total income also rose to Rs 78,352 crore during the assessed quarter, compared to Rs 75,981 crore in the same period of 2020-21, it said. On a consolidated basis, the SBI Group posted a 51 percent increase in net profit to Rs 9,692 crore during the quarter, compared to Rs 6,402 crore in the same period a year ago.
Net interest income (NII) rose 6.48 percent year-on-year to Rs 30,687 crore from Rs 28,820 crore. Net interest margin (NIM) improved 6 basis points to 3.4 percent in the December quarter from 3.34 percent in the corresponding quarter last year.
The bank said strong growth was seen in the private retail segment, driven by home loans, Xpress loans and other loans. Lending to companies and SMEs also picked up during the quarter.
Deposits for the quarter increased 8.83 percent year-on-year to Rs 38,47,794 crore, while gross advances increased 8.47 percent to Rs 26,64,602 crore in the quarter under review. From this, retail personal advances rose 14.57 percent year-on-year to 9.52,189 crore.
The quality of the bank’s assets continued to improve strongly as the gross non-performing asset ratio for the quarter came in at 4.5 percent, up from 4.9 percent in the previous three-month period.
Similarly, the net NPA ratio improved to 1.34 percent for the quarter, from 1.52 percent in the previous quarter. The slippages rose year-on-year to Rs 2,334 crore during the quarter, but below analysts’ expectations from Rs 9,500 crore to Rs 11,000 crore. However, sequentially, the slippage in the December quarter was lower than the Rs 4,176 crore reported in the previous quarter. The slippage ratio was 0.37 percent, compared to 0.66 percent in the previous quarter.
Forex earnings were down 21 percent year-on-year at Rs 484 crore, miscellaneous earnings were down 17 percent year-on-year at Rs 1,929 crore and profit and loss on investment sales also fell 46.45 percent year-on-year at Rs 514 crore. In contrast, fee income increased by 7.45 percent to Rs 5,747 crore.
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