State Bank of India Q3 Results: Profit Decreases by 35.4%, Misses Estimates admin, February 3, 2024 The public sector lender reported a standalone net profit of Rs 9,163.96 crore for the quarter-ended December, compared to Rs 14,205 crore in the same period last year. Analysts polled by Bloomberg estimated a profit of Rs 13,325.9 crore. Net interest income rose to Rs 39,815.73 crore from Rs 38,069 crore, a 4.5% increase year-on-year. The gross non-performing asset ratio improved to 2.42% from 2.55% sequentially, while the net NPA ratio remained flat at 0.64% sequentially. The bank’s operating profit declined 19.36% year-on-year to Rs 20,336 crore, excluding the wage revision impact of Rs 6,313 crore. The domestic net interest margin slipped 4 basis points sequentially to 3.41%. Dinesh Kumar Khara, chairman of SBI, stated that the lender would maintain the net interest margin at current levels. The bank reported gross slippages in the December quarter at Rs 5,046 crore, with recoveries and upgrades standing at Rs 1,798 crore, up 9.4% year-on-year. The provision coverage ratio stood at 74.17%, down 195 bps year-on-year as of Dec. 31. The lender made a one-time pension-related provision of Rs 7,100 crore, which showed as an exceptional item. Operating expenses for the quarter rose 27.2% year-on-year to Rs 30,938 crore. The bank’s gross advances grew 14.38% year-on-year to Rs 35.84 lakh crore, driven by retail personal and SME loans, while total deposits rose 13.02% year-on-year to Rs 47.62 lakh crore. Sequentially, CASA ratio of the bank fell 7 basis points to 41.18%, attributed to the flow of funds from savings to term deposits. SBI’s credit cost for the December quarter stayed flat sequentially at 0.21%. Capital adequacy ratio stood at 13.05%, down 22 bps year-on-year. The bank explained that higher credit risk weights have affected CRAR by 70 bps and CET-1 by 49 bps. It does not foresee any immediate capital requirement, as the lender is capital adequate. SBI Payments is reaching out to merchants for onboarding them, offering point-of-sale machines and QR codes. State Bank of India (SBI)