State Bank of India Q3 net profit up 52.7% at Rs9,555cr on 31% fall in provisions for loan losses at Rs7,442cr

5 Feb 2022 , 05:01 PM

State Bank of India reported 7.56% yoy growth in total consolidated revenues in the Dec-21 quarter at Rs104,528cr. Revenues of SBI were up 3.55% on a sequential basis.

In terms of top line revenues, SBI saw modest revenue growth in treasury operations and retail banking and a modest fall in revenues in wholesale banking.

However, insurance revenues for the quarter were nearly 27% higher on yoy basis. On a yoy basis, the net interest income or NII was up 6.48% at Rs30,687cr.

Ratio of CASA deposits as of Dec-21 quarter stood at 45.74%. While domestic advances grew 6.47% in the quarter yoy, retail advances were up 14.6%.

For the Dec-21 quarter, the operating profits were up 6.05% at Rs20,592cr. Net interest margins improved by 6 bps yoy at 3.40%. Credit cost for the quarter stood at just 0.49% while the cost to income ratio trended lower at 52.94%.

ROE of the bank improved by 452bps in the quarter at 14.01%. Provision coverage ratio for the bank stood at 88.32% in the quarter. The slippage ratio was just about 0.37%.  Operating margin or OPM tapered slightly from a level of 19.98% in Dec-20 to 19.70% in Dec-21 quarter.

Profit after tax (PAT) for the Dec-21 quarter was up by 52.7% at Rs9,555cr. This was largely on account of a 31% fall in provisions for loan losses at Rs7,442cr. Gross NPAs were slightly lower at 4.50% for the bank.

Capital adequacy needs improvement at 13.23%. PAT margins improved from 6.44% to 9.14% on a yoy basis. Net margins were also higher on a sequential basis by 35 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	State Bank of India
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income	₹ 1,04,528	₹ 97,182	7.56%	₹ 1,01,143	3.35%
Operating Profit	₹ 20,592	₹ 19,417	6.05%	₹ 20,445	0.72%
Net Profit	₹ 9,555	₹ 6,258	52.70%	₹ 8,890	7.48%
Diluted EPS	₹ 10.71	₹ 7.01		₹ 9.96
Operating Margins	19.70%	19.98%		20.21%
Net Margins	9.14%	6.44%		8.79%
Gross NPA Ratio	4.50%	4.77%		4.90%
Net NPA Ratio	1.34%	1.23%		1.52%
Return on Assets (Ann)	0.71%	0.49%		0.66%
Capital Adequacy	13.23%	14.50%		13.35%