Country’s largest lender, State Bank of India (SBI), reported a 62.3 per cent year-on-year (YoY) rise in net profit at Rs 8,432 crore in the third quarter ended December 31, 2021 on increase in interest margins.
This is the highest quarterly net profit reported by the bank.
In the year-ago period (Q3FY21), it had posted a net profit of Rs 5,196 crore. Sequentially, profits rose by 10.56 per cent from Rs 7,627 crore in Q2FY22.
Net interest Income (NII) of the lender rose by 6.48 per cent YoY in Q3FY22 to Rs 30,687 crore from Rs 28,820 crore the same period last year on back of improvement in credit offtake. Sequentially, it was down 1.6 per cent from Rs 31,184 crore, SBI said in a statement.
Domestic net interest margin, a measure of profitability, stood at 3.40 per cent in Q3FY22, up six basis points YoY. However, sequentially NIM declined by 10 basis points from 3.50 per cent in Q2FY22.
Other income -- fees, sale of investments, recoveries and forex income --- fell to Rs 8,673.42 crore in Q3FY22 from Rs 9,246.15 crore a year ago.
The loan loss provisions rose by 35.18 per cent YoY to Rs 3,096 crore in Q3FY22 from Rs 2,290 crore in Q3FY22 and 14.7 per cent from Rs 2,699 crore in Q2FY21.
Asset quality improved in the third quarter with gross non-performing assets (NPAs) declining at 4.5 per cent in December 2021 from 4.77 per cent a year ago and 4.9 per cent in the September quarter.
Net NPAs were higher at 1.34 per cent in December 2021 as against 1.23 per cent in December 2020. However, they were down from 1.52 per cent in September 2021.
The provision coverage ratio moderated to 88.32 per cent at end of December 2021 as against 90.21 per cent a year ago. Sequentially, it moved up from 87.68 per cent as of September 2021.
The bank’s advances grew by 8.47 per cent YoY to Rs 26.64 trillion. Personal retail advances rose 14.57 per cent YoY and foreign office advances grew by 21.35 per cent YoY. Home loan, which constitutes 24% of bank’s domestic advances, grew by 11.15 per cent YoY. Growth in corporate and SME segments has also picked up during the wuarter, SBI said.
Its total deposits grew at 8.83 per cent YoY to Rs 38.47 trillion as end of December 2021.
The bank's capital adequacy ratio stood at 13.23 per cent in December 2021 down from 14.5 per cent in December 2020.
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