More Stories

Informist, Thursday, Feb. 6, 2025

 

Please click here to read all liners published on this story

--SBI Oct-Dec net profit INR 168.91 bln vs INR 91.64 bln year ago
--Analysts saw SBI Oct-Dec net profit at INR 164.19 bln
--SBI gross NPA ratio 2.07% as on Dec 31 vs 2.13% qtr ago, 2.42% yr ago
--SBI Oct-Dec provisions INR 9.11 bln vs INR 6.88 bln year ago
--SBI Oct-Dec total income INR 1.285 tln vs INR 1.182 tln year ago
--SBI net NPA ratio 0.53% as on Dec 31 vs 0.53% qtr ago, 0.64% yr ago
--SBI Basel-III capital adequacy ratio 13.03% as on Dec 31
--SBI Oct-Dec NPA provisions INR 23.05 bln vs INR 17.57 bln year ago
--SBI Apr-Dec net profit INR 522.58 bln vs INR 403.78 bln year ago
--SBI Apr-Dec total income INR 3.803 tln vs INR 3.384 tln year ago
--SBI: Provision Coverage Ratio 74.66% as on Dec 31
--SBI Oct-Dec net interest income INR 414.46 bln, up 4.1% YoY
--SBI Oct-Dec domestic NIM 3.15% vs 3.27% Jul-Sept, 3.34% year ago
--SBI: Gross advances at INR 40.68 tln as on Dec 31, up 13.5% YoY
--SBI: Deposits at INR 52.29 tln as on Dec 31, up 9.8% YoY
--SBI: CASA ratio at 39.20% as on Dec 31 vs 40.03% a quarter ago
--SBI Oct-Dec slippage ratio at 0.39% vs 0.51% qtr ago, 0.58% year ago
--SBI: Oct-Dec credit cost 0.24% vs 0.38% in Jul-Sept, 0.21% year ago
--SBI: Retail personal loans at INR 14.47 tln as on Dec 31, up 11.7% YoY
--SBI: Corporate loans at INR 11.76 tln as on Dec 31, up 14.9% YoY
--SBI Oct-Dec domestic cost of deposit 5.07% vs 5.03% Jul-Sept, 4.75% yr ago
--SBI Oct-Dec fresh slippages INR 38.23 bln vs INR 49.60 bln year ago
--SBI Oct-Dec recoveries, upgrades INR 12.06 bln vs INR 17.98 bln year ago
--SBI: Special Mention Accounts-1, 2 at INR 95.52 bln as on Dec 31
 

 

By Siddharth Upasani

 

MUMBAI – State Bank of India on Thursday reported an 84% increase in its net profit to INR 168.91 billion for the December quarter, beating the analysts' estimates. The country's largest bank's net interest income rose only 4% during the quarter, but provisions for bad loans jumped 31% on year.

 

SBI's bottom line was sharply lower in the December quarter last year at INR 91.64 billion due to a one-time provision of INR 71.00 billion for increase in pension liabilities and Dearness Relief neutralisation.

 

Analysts had projected the net profit for the quarter at INR 164.19 billion. The bank's shares ended at INR 752.25 on the National Stock Exchange on Thursday, down 1.8% from the previous close.

 

SBI's net interest income rose to INR 414.46 billion in Oct-Dec on the back of a 13% growth in gross advances to INR 40.68 trillion as on Dec. 31, with loans to Small and Medium Enterprises rising fastest. At the end of December, SME loans stood at INR 4.96 trillion, up 19% on year, while retail personal loans were up 12% at INR 14.47 trillion. Corporate loans were up 15% at INR 11.76 trillion. Total income for the reporting quarter was INR 1.285 trillion, up 9% on year, and INR 3.803 trillion for the nine months ended December, up 12%. The net profit for Apr-Dec was 29% higher at INR 522.58 billion.

 

On the liability side, SBI's deposits were 10% higher at INR 52.29 trillion at the end of December, with the current account, savings account ratio declining to 39.20% from 40.03% at the end of September and 41.18% at the end of 2023. Consequently, the domestic cost of deposits continued to edge up, rising 4 basis points on quarter to 5.07% in Oct-Dec. In the third quarter of 2023-24 (Apr-Mar), SBI's domestic cost of deposits was 4.75%.

 

The net interest margin for the reporting quarter was 3.15%, down from 3.27% in Jul-Sept and 3.34% a year ago.  

 

Provisions, net of write-back, rose 32% on year to INR 9.11 billion in Oct-Dec. Provisions for bad loans were at INR 23.05 billion, 31% higher from last year, even as fresh slippages fell to INR 38.23 billion from INR 49.60 billion. The slippage ratio in Oct-Dec was 0.39%, down from 0.51% in Jul-Sept and 0.58% last year, with the credit cost edging lower sequentially by 14 bps to 0.24%. However, the ratio was up 3 bps from the same quarter last year.

 

SBI's Provision Coverage Ratio stood at 74.66% as on Dec. 31, down a full percentage point from Sept. 30. The gross non-performing assets ratio eased to 2.07% as on Dec. 31 from 2.13% at the end of September and 2.42% a year ago, although the net bad loan ratio was unchanged from a quarter ago at 0.53% as on Dec. 31, but was down 11 bps on year.

 

While SBI saw a smaller quantum of fresh slippages in Oct-Dec, recoveries and upgrades also dropped to INR 12.06 billion from INR 17.98 billion last year. As such, there was a net increase of INR 9.91 billion in the bank's gross NPAs at the end of December compared to Sept. 30. Jul-Sept had seen a net decrease of INR 8.57 billion while Oct-Dec 2023 had also seen a net reduction of INR 2.25 billion in gross NPAs.

 

The bank saw a big jump in the size of its Special Mention Account-2 to INR 74.24 billion as on Dec. 31 from INR 18.40 billion a quarter ago due to a "long-term government sector customer" with fund-based outstanding of around INR 58.00 billion, the bank said in its investor presentation. However, the account has been "pulled back subsequently", the bank added.

 

The total size of SBI's Special Mention Account-1 and Special Mention Account-2 book was INR 95.52 billion as on Dec. 31. The capital adequacy ratio stood at 13.03% at the end of December.  End

 

Edited by Saji George Titus

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.