SBI Q3 net profit falls 7% as provisions rise
State Bank of India (SBI), the country’s largest lender, reported a net profit of Rs 5,196.2 crore in the third quarter of fiscal 2021, down 6.9% from Rs 5,583.4 crore in the year-ago period.
Net interest income (NII) in Q3FY21 rose 3.7% to Rs 28,820 crore from Rs 27,779 crore, YoY.
Operating profit was at Rs 17,333 crore in Q3FY21 as compared to Rs 16,460 crores in Q2FY21, an increase of 5.31% sequentially. Year on year operating profit has come down by 4.88%.
Credit growth during the quarter stood at 6.73% YoY, mainly driven by Retail (Personal) Advances (15.47% YoY), SME (5.62% YoY) and Corporate Advances (2.23% YoY).
Provisions and contingencies increased significantly by 42.6% YoY to Rs 10,342.39 crore.
On the asset quality front, gross non-performing assets (NPA) fell 6.4% to Rs 1.17 lakh crore from Rs 1.25 lakh crore, while net NPA declined 20.4% to Rs 29,031.7 crore from Rs 36,450.7 crore, QoQ.
Gross NPA (as a percentage of gross advances) decreased by 51 bps to 4.77% from 5.28%, while Net NPA (as a percentage of net advances) fell by 36 bps to 1.23% from 1.59%, on a sequential basis.
SBI’s proforma Gross NPA were at 5.44% and Net NPA at 1.81%.
SBI’s Q3FY21 proforma slippage was at Rs 2,073 crore, while proforma slippage for 9 months were at Rs 16,461 crore.
The bank made provisions of Rs 5,265 crore as of December 31 for accounts kept standard due to Supreme Court order. The bank also made an additional provision of Rs 6,247 crore as of December 31 towards COVID impact.
In Q3FY21, restructuring applications received by the bank were at Rs 11,630 crore.
Capital Adequacy Ratio (CAR) has improved by 77 bps YoY to 14.50% as on December 2020.
Total Deposits grew at 13.64% YoY, out of which Current Account Deposit grew by 11.33% YoY, while Saving Bank Deposits grew by 15.99%.
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