SBI stock surges 3% after logging highest quarterly standalone PAT of Rs8,432cr in Q3

7 Feb 2022 , 10:45 AM

State Bank of India (SBI) has registered its highest quarterly standalone net profit of Rs8,432cr in Q3FY22, up 62.27% yoy, compared with Rs5,196cr in the corresponding quarter last year. Net interest income rose 6.48% yoy to Rs30,687cr in Q3FY22 from Rs28,820cr in Q3FY21.

Net Interest Income (NII) for Q3FY22 increased by 6.48% yoy to Rs30,687 cr from Rs28,820cr. Operating profit increased by 6.86% yoy to Rs18,522cr in Q3FY22 from Rs17,333cr in Q3FY21.

The company stock continued bullish run post Q3 earnings. At around 10.48 am, State Bank of India was trading at Rs546.70 per piece up by Rs16.5 or 3.11% from its previous closing of Rs530.20 per piece on the BSE. The scrip opened at Rs534 and has touched a high and low of Rs547.35 and Rs525.65 respectively.

Return on Equity (RoE) as at the end of Q3FY22 stands at 14.01% which is higher by 452 bps yoy. Domestic NIM for Q3FY22 at 3.40%, has increased by 6 bps YoY.

Whole Bank Advances grew by 8.47% yoy. Domestic Advances growth stood at 6.47% yoy driven by growth in Personal Retail Advances (14.57% yoy). Foreign Office Advances grew by 21.35% yoy.

Home loan, which constitutes ~24% of Bank’s domestic advances, has grown by 11.15% yoy. Growth in Corporate and SME segment has also picked up during the Quarter.

Total Deposits grew at 8.83% yoy. Saving Bank Deposits grew by 10.30% yoy while Current Account Deposits grew by 7.89% yoy. Gross NPA ratio at 4.50% is down by 94 bps YoY while Net NPA ratio at 1.34% is down by 47 bps YoY, taking into consideration proforma NPAs as on Dec 20. On an unadjusted basis, Gross NPA ratio is down by 27 bps yoy while Net NPA ratio is up by 11 bps yoy.

Provision Coverage Ratio (PCR) as at the end of Q3FY22 stands at 88.32%.  Slippage Ratio for Q3FY22 stands at 0.37% only. Credit Cost for Q3FY22 stands at 0.49%. Cost to Income Ratio at 52.94% during Q3FY22 is lower by 153 bps yoy. Capital Adequacy Ratio (CAR) as at the end of Q3FY22 stands at 13.23% without including 9MFY22 Profit. If we include profit of 9MFY22, the CAR will improve by 94 bps.

Return on Assets (RoA) as at the end of Q3FY22 stands at 0.64%, which is higher by 19 bps yoy.  Share of Alternate Channels in total transactions has increased from 93% in 9MFY21 to 95% in 9MFY22.