Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Company Results/  SBI Q3 results: Net profit slides to 5,196 crore but beats estimates
BackBack

SBI Q3 results: Net profit slides to ₹5,196 crore but beats estimates

SBI's credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%
  • Results are positive for SBI shares and can drive further re-rating, Yes Securities said
  • SBI shares were trading 1% higher in noon trade.Premium
    SBI shares were trading 1% higher in noon trade.

    Indian biggest bank State Bank of India reported a net profit of 5,196 crore in the December quarter, a 7% drop from 5,583 crore reported in the same quarter of the previous year.

    SBI shares were trading 1% higher in noon trade.

    However, sequentially, SBI's profit rose 13.6% as compared to Rs.4,574 crore posted in the September quarter.

    SBI was expected to post a net profit of 4,850 crore in the three months to December 2020, lower than 5,583.36 crore in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.

    "Loan growth was ahead of estimates at 3% qoq and 7% yoy - driven by sustained strong traction in retail portfolio (up 15.5% yoy) - including investments in Corporate Bonds & CPs (credit substitutes), the loan growth stood is at 8% yoy. Domestic NIM for the quarter at 3.34%, has remained stable sequentially," Yes Securities said in a note.

    "Results are positive for the stock and can drive further re-rating," the brokerage added.

    Here are highlights from SBI Q3 results:

    SBI's credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%

    Bank registered an Operating Profit of Rs. 17,333 Crores in Q3FY21 as compared to Rs.16,460 Crores in Q2FY21, an increase of 5.31% sequentially. Year on year Operating Profit has come down by 4.88%.

    Net Profit for 9MFY21 at Rs. 13,960 crores, has increased by 27.99% YoY as against Rs. 10,907 crores in 9MFY20.

    Net Interest Income for Q3FY21 increased to 2.27% sequentially and 3.75% YoY.

    Domestic NIM for the quarter at 3.34%, has remained stable sequentially.

    Non-Interest Income for Q3FY21 at Rs.9,246 Crores grew by 8.42% sequentially and 1.54% YoY.

    Total Deposits grew at 13.64% YoY, out of which Current Account Deposit grew by 11.33% YoY, while Saving Bank Deposits grew by 15.99% YoY.

    Home loan, which constitutes 23% of Bank’s domestic advances, has grown by 9.99% YoY.

    Net NPA ratio at 1.23% is down 142 bps YoY and 36 bps QoQ. Gross NPA ratio at 4.77% is down 217 bps YoY and 51 bps QoQ.

    However, if the bank had classified borrower accounts as non-performing after 31 August 2020, its proforma gross NPA ratio and proforma net NPA ratio would have been 5.4% and 1.8%, respectively.

    Provision Coverage Ratio (PCR) has improved to 90.21%, up 848 bps YoY and 202 bps QoQ.

    Slippages Ratio for 9MFY21 has declined to 0.36% from 2.42% as at the end of 9MFY20.

    Credit Cost as at the end of 9MFY21 has declined 85 bps YoY to 0.38%.

    Cost to Income Ratio has marginally increased from 52.45% in 9MFY20 to 53.25% in 9MFY21.

    Capital Adequacy Ratio (CAR) has improved by 77 bps YoY to 14.50% as on Dec 2020.

    Return on Assets (RoA) increased by 6 bps YoY to 0.45% in 9MFY21 against 0.39% in 9MFY20

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 04 Feb 2021, 01:56 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie