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State Bank of India (SBI) reported third quarter net profit plunged 35.49% to ₹9,164 crore as compared with ₹14,205 crore in the year ago period due to a one-time provisioning of ₹7,100 crore toward wage hikes and pension liabilities, its chairman Dinesh Khara said at a press conference.
He said the asset quality of the bank during the quarter remained healthy.
During the quarter ended December 31, 2023 the Net Interest Income (NII) of India’s largest bank increased by 4.59% Year on Year (YoY) to ₹39,816 crore.
However, the bank’s Net Interest Margin (NIM) decreased by 35 basis points (bps) YoY to 3.34%.
The bank during the quarter reported healthy credit growth of 14.38% YoY to ₹35,84,252 crore with Domestic Advances growing by 14.47% YoY.
Corporate Advances and SME Advances crossed ₹10 lakh crore and 4 lakh crore respectively, Mr Khara said.
Domestic advances growth was driven by Small and Medium Enterprises advances (19.24% YoY) followed by agriculture advances that grew by 18.12% YoY, he added.
Retail personal advances and corporate loans registered YoY growth of 15.28% and 10.71% respectively, he further said.
Deposits at the bank grew at 13.02% YoY, out of which current and savings account deposits grew by 4.48% YoY.
Loan loss provisions during the quarter increased 10.75% to ₹1,757 crore from ₹1,586 crore a year ago.
Slippage ratio for the quarter increased by 17 bps YoY and stood at 0.58%.
Gross Non Performing Assets (NPA) decreased by 11.79% to ₹86,749 crore as compared with ₹98,347 crore a year ago. Net NPA reduced by 4.58% to ₹22,408 crore from ₹23,484 crore in the year ago period.
Credit cost of the bank for Q3 FY24 remained flat YoY at 0.21%.
Capital Adequacy Ratio as at the end of Q3 FY24 stood at 13.05%.
