SBI Q3 Results: Net Profit Declines 35% to ₹9,164 crore

State Bank of India (SBI), the nation’s premier banking institution, disclosed its financial outcomes for the third quarter, revealing a significant decrease in its standalone net profit. The bank’s net profit saw a sharp drop of 35% to Rs 9,164 crore during the December quarter, down from Rs 14,205 crore in the corresponding quarter of the previous year.

Income and Interest Earnings Show Positive Movement

Despite the fall in net profit, SBI experienced a robust increase in total income, which ascended to Rs 1,18,193 crore in the current fiscal third quarter, up from Rs 98,084 crore a year earlier. The bank’s interest income also witnessed a substantial rise, reaching Rs 1,06,734 crore compared to Rs 86,616 crore in the same period last year, underscoring a healthy growth in its core banking operations.

Improvements in Asset Quality

A notable highlight from the quarter was the improvement in SBI’s asset quality. The gross Non-Performing Assets (NPA) ratio improved, reducing to 2.42% at the end of December from 3.14% at the close of the third quarter of the previous year. The net NPA ratio also showed a favourable decline, easing to 0.64% from 0.77% in the corresponding period a year ago.

Consolidated Financial Performance

On a consolidated basis, the SBI Group witnessed a decrease in net profit by 29%, standing at Rs 11,064 crore against Rs 15,477 crore reported in the same quarter the previous year. However, the group’s total income painted a brighter picture, with an increase to Rs 1,53,072 crore from Rs 1,27,219 crore in the year-ago quarter.

Strategic Acquisitions and Stake Enhancements

In a strategic move during the quarter, SBI announced the acquisition of the entire 20% stake held by SBI Capital Markets Ltd (SBICAPS) in SBI Pension Funds Pvt Ltd. This acquisition boosted the bank’s ownership in SBI Pension Funds Pvt Ltd from 60% to 80%, with the transaction valued at Rs 229.52 crore. This step is part of SBI’s broader strategy to consolidate its position in the pension funds market.

Despite the dip in net profit, the State Bank of India’s third-quarter results highlight several positive developments, including robust income growth and improved asset quality. These elements underscore the bank’s resilience and strategic focus on strengthening its core operations and market positioning.