SBI Q3 result: Net profit declines 35 percent to ₹9,164 crore

SBI’s net profit for the October-December quarter was weighed by higher operating expenses, it added.

Performance

In the first nine months of FY24, the bank’s revenue stood at ₹40,378 crore, marking a 20.40 percent increase compared to the same period in the previous fiscal year, which reported ₹33,538 crore.

The bank saw approximately 14.38 percent growth year-on-year (YoY) across all segments. Corporate advances crossed ₹10 lakh crore, while SME advances surpassed ₹4 lakh crore – showing expansion in both sectors.

Return on Assets (ROA) for 9MFY24 saw an increase of 0.94 percent, up by 7 basis points (bps) from 9MFY23. While the Return on Equity (ROE) stood at 19.47 percent for 9MFY24, reflecting an 88 bps improvement over the same period in the previous fiscal.

Gross Non-Performing Assets (NPA) also showed an improvement, standing at 2.42 percent, a reduction of 72 bps compared to the previous year. Net NPA also improved at 0.64 percent, down by 13 bps YoY. The Credit Cost for 9MFY24 was reported at 0.25 percent, indicating a 12 bps improvement from the same period in the previous fiscal year.

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

Around ₹95,142 crore in advances business were sourced through Analytical leads, indicating a 37 percent growth YoY.

Expectations

The decline was as expected by analysts. Shreyansh Shah, Research Analyst at StoxBox said, “We expect the banking elephant SBI to come out with a good set of numbers in Q3FY24. Though some marginal decline in NIMs is expected from the PSB due to the ongoing high cost of funds, we anticipate the bank’s absolute profitability to witness mid-teen-digit growth in the current quarter on account of high disbursals of advances backed by elevated infra spends. Furthermore, the bank has a large share in the salary account, and the CASA and the CD ratio would not show signs of concern. The highlight of this quarter’s numbers would be seen in the significant growth in its other income backed by the bank’s focus on optimizing its vast branch network of 22,405 for cross-selling opportunities.”

Post-declaration of the SBI Q3 results 2024, a conference call is scheduled at 5:00 PM on Saturday.

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Published: 03 Feb 2024, 02:01 PM IST