SBI reports net profit of ₹5,583 crore in Q3, up 41% YoY1 min read . Updated: 31 Jan 2020, 04:59 PM IST
- Net interest income was ₹27,778.79, up 22.4% from the same period last year.
Mumbai: State Bank of India (SBI), India’s largest lender, on Friday reported a 41.2% year-on-year jump in its October-December net profit to ₹5,583 crore, led by higher interest and other income.
While the bank’s interest income rose 8.6% year-on-year (y-o-y) to ₹67,692 crore, its other income increased 13.3% to ₹9,106 crore during the reporting quarter.
SBI’s net profit was lower than the ₹5,871.6 crore estimated by a Bloomberg poll of 13 analysts. The bank’s net interest income – difference between interest earned and expended – stood at ₹27,778.79, up 22.4% from the same period last year.
The bank's asset quality improved in the third quarter of FY20, with gross non-performing assets (NPAs) as a percentage of total advances at 6.94%, down 177 basis points (bps) y-o-y, and 25 bps sequentially. In absolute terms, bank’s gross NPAs declined 15% y-o-y to ₹1.59 trillion.
Its capital adequacy ratio under Basel III norms stood at 13.73%, up 96 bps y-o-y and 14 bps from a quarter ago.
SBI had disclosed in December that a Reserve Bank of India’s (RBI) inspection found that it underreported bad loans and their provisioning by ₹11,932 crore and ₹12,036 crore, respectively, in 2018-19. It said, on Friday, that it has made full provisions against the divergence in the December quarter.
The lender also said it has made a provision of ₹602 crore in the quarter ended December (total cumulative till December is ₹8,237.4 crore) towards arrears of wages due for revision, effective 1 November, 2017.
The Indian Banks’ Association (IBA) and bank unions are, at present, negotiating a pay hike and benefits to bank employees. IBA has said while it was unable to accept the bank unions’ demand for a 5-day work week, it has offered a 19% pay hike to employees.