SBI posts record quarterly profit, asset quality improves
SBI posted a 41% jump in net profit to ₹5,583 croreIn Q3, net NPA ratio was at 2.65%, down 130 bps YoY and 14 bps QoQ.
SBI, India’s biggest bank, today reported a big jump in net profit for the quarter ended December 31, pushing its stocks over 2% higher in afternoon trade. SBI posted a 41% jump in net profit to ₹5,583 crore as compared to ₹3955 crore in the same quarter of the previous year, driven by strong growth in net interest income and fee income.
This is also the highest ever quarterly net profit recorded by the bank, SBI said.
SBI further said that during the quarter, it exercised the option of lower tax rate taking a one-time hit of Rs. 1,333 crore. Excluding the impact of this one-time additional hit, net profit in Q3 would have been ₹6,916 crore as against Rs. 3,955 crore in Q3FY19.
Analysts polled by Reuters had forecast the bank to report net profit of ₹6,334 crore.
Provisions for bad loans dropped 41.4% while slippages, or fresh addition of bad loans, surged to ₹16,525 crore from ₹8,805 crore in the previous quarter, due to a ₹7000 crore exposure to a large housing finance company, SBI said.
Other highlights of SBI Q3
Net interest income - difference between interest earned and expended - grew by 22.42% YoY and 12.92% QoQ
Domestic Net Interest Margin (NIM) improved to 3.59% in Q3FY20, registering an increase of 62 bps YoY and 37 bps sequentially.
Fee income for Q3FY20 at R. 5,635 Cr is up by 19.30% YoY.
Operating Profit increased to Rs. 18,223 Crores in Q3FY20 from ₹12,625 Crores in Q3FY19, an increase of 44.34% YoY
Credit Growth at 6.79% YoY - mainly driven by Retail-Personal Advances (17.49% YoY).
Net NPA ratio at 2.65%, down 130 bps YoY and 14 bps QoQ.
Gross NPA ratio at 6.94% is down 177 bps YoY and 25 bps QoQ.
Provision Coverage Ratio (PCR) improved to 81.73%, up 710 bps YoY and 50 bps QoQ.
Slippages of ₹16,525 crore includes exposure to a large Housing Finance Company (approx. Rs.7000 crore)
Capital adequacy ratio improved to 13.73% as on Dec 2019, an increase of 96 bps YoY and 14 bps sequentially
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