SBI Q3 Profit Slips 35%, Higher Operational Expenses Take a Bite

5 Feb 2024 , 03:37 PM

On February 3, the State Bank of India (SBI) reported a standalone net profit of ₹9,164 Crore for Q3, marking a 35% decline in the December quarter, as stated in a stock exchange filing. The lower net profit in the October-December quarter was attributed to higher operating expenses.

For the first nine months of FY24, SBI’s profit reached ₹40,378 Crore, reflecting a 20.40% increase compared to the same period in the previous fiscal year, where it reported ₹33,538 Crore. The bank experienced a robust 14.38% year-on-year growth across all segments. Corporate advances surpassed ₹10 trillion, while SME advances exceeded ₹4 trillion, indicating growth in both sectors.

Return on Assets (ROA) for the first nine months of FY24 increased by 0.94%, up by 7 basis points (bps) from the same period in the previous fiscal year. The Return on Equity (ROE) stood at 19.47% for 9MFY24, reflecting an 88 bps improvement over the corresponding period in the previous fiscal year.

SBI exhibited improvement in its asset quality metrics, with Gross Non-Performing Assets (NPA) at 2.42%, a reduction of 72 bps year-on-year (YoY). Net NPA also improved to 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.

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