SBI Q3 net surges 84% on lower base to ₹16,891 cr., asset quality improves 

The country’s largest lender State Bank of India (SBI) posted a 84.3% year-on-year growth in third-quarter net profit to ₹16,891 crore compared with ₹9,164 crore a year ago. The Q3 FY24 profit was impacted by a one-time provision of ₹7,100 crore towards wage revision and pension cost 

Net Interest Income (NII) grew 4.6% to ₹41,446 crore. However, net interest margin (NIM) slid 19 basis points (bps) to 3.27%.

Loan loss provisions rose to ₹2,305 crore from ₹1,757 crore a year ago, the bank said in a filing.

Asset quality improved with gross non-performing assets (GNPA) reducing by 2.75% to ₹84,360 crore and Net NPA by 4.60% to ₹21,378 crore.

While deposits at ₹52,29,384 crore grew by 9.81%, gross advances rose 13.49% to ₹40,67,752 crore.

Domestic corporate loan book grew 14.86% to ₹11,76,303 crore and domestic retail personal loan book by 11.65% to ₹14,47,337 crore. Home loan book climbed by 14.24% to ₹7,92,827 crore.

SME advances grew by 18.71% followed by agricultural advances at 15.31% and retail personal loans by 11.65%.

Commenting on the result, SBI Chairman C.S. Setty said “This demonstrates the bank’s ability to operate profitably and by scale. We have maintained out asset quality which has been improving for the last five years and now, we have sufficient head room for growth.”

He said the bank maintains a guidance of 14 to 16% growth in terms of advances and 10% growth in terms of deposits.

On the Budgetary provision for tax relief for people in the ₹12 lakh salary bucket, Mr. Setty said, “This is definitely a positive step for the banking system. In our portfolio, a large number customers are from this category and the TDS benefit for senior citizens is also a big positive. As much as 20% of the deposits of the overall banking system comes from this segment. A combination of this will help us mobilise more deposits.”

Answering a question from The Hindu on the likely impact of tariff action by the U.S., Mr Setty said, “There is also a positive side to it depending on which country will be hit by the tariffs. The export basket of India is highly diversified both in terms of geographies and product profile.”

“So, I do not see immediate impact of any tariff action. I am told that exports to the U.S. also is not too high to be worried about. The general environment creates some uncertainty and this is something we have to tide over.”