SBI Q3 result: Net profit declines 35% to ₹9,164 crore

SBI Q3 result: Net profit declines 35% to ₹9,164 crore

State Bank of India (SBI) on February 3 reported its Q3 standalone net profit at 9,164 crore, a decline of 35% in the December quarter, the company said in a stock exchange filing.

SBI’s net profit for the October-December quarter was weighed down by higher operating expenses, it added.

Performance

In the first nine months of FY24, the bank’s profit stood at 40,378 crore, marking a 20.40% increase compared to the same period in the previous fiscal year, which reported 33,538 crore.

Also Read | ED to probe Paytm Payments Bank for fund siphoning if new charges found, says Revenue Secy

The bank saw approximately 14.38% growth year-on-year (YoY) across all segments. Corporate advances crossed 10 trillion, while SME advances surpassed 4 trillion – showing expansion in both sectors.

Return on Assets (ROA) for 9MFY24 saw an increase of 0.94%, up by 7 basis points (bps) from 9MFY23. While the Return on Equity (ROE) stood at 19.47% for 9MFY24, reflecting an 88 bps improvement over the same period in the previous fiscal.

Gross Non-Performing Assets (NPA) also showed an improvement, standing at 2.42%, a reduction of 72 bps compared to the previous year. Net NPA also improved at 0.64%, down by 13 bps YoY. The Credit Cost for 9MFY24 was reported at 0.25%, indicating a 12 bps improvement from the same period in the previous fiscal year.

Also Read | 1:10 stock split: Defense stock gives 350% return to allottees in six years

The Provision Coverage Ratio (PCR) reached 74.17%, and when including Additional Unsecured Credit Amount (AUCA), it stood at 91.49%. And total non-NPA provisions, not included in PCR, amounted to 33,472 crore, constituting approximately 149% of Net NPAs at the end of Q3FY24.

Around 95,142 crore in advances business were sourced through Analytical leads, indicating a 37% growth YoY.

Expectations

The decline was as expected by analysts. Shreyansh Shah, Research Analyst at StoxBox said, “We expect the banking elephant SBI to come out with a good set of numbers in Q3FY24. Though some marginal decline in NIMs is expected from the PSB due to the ongoing high cost of funds, we anticipate the bank’s absolute profitability to witness mid-teen-digit growth in the current quarter on account of high disbursals of advances backed by elevated infra spends. Furthermore, the bank has a large share in the salary account, and the CASA and the CD ratio would not show signs of concern. The highlight of this quarter’s numbers would be seen in the significant growth in its other income backed by the bank’s focus on optimizing its vast branch network of 22,405 for cross-selling opportunities.”

Also Read | Gold rate today at four-week high. Should you buy as the Middle East crisis boosts demand for yellow metal?

Post-declaration of the SBI Q3 results 2024, a conference call is scheduled at 5:00 PM on Saturday.

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here.
Download The Mint News App to get Daily Market Updates & Live Business News.

More
Less

Published: 03 Feb 2024, 02:01 PM IST

#SBI #result #Net #profit #declines #crore

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *