SBI Q3 FY24 result: Net profit falls 35% to Rs 9,163 crore, asset quality improves

The State Bank of India (SBI) on Saturday reported a net profit of Rs 9,163 crore for Q3 quarter for FY24, which was 35 per cent less than Rs 14,205 crore clocked in the year-ago period.

The public lender though reported a standalone net profit of Rs 40,378 crores for the first nine months of FY24, which was 20.40 per cent up from Rs 33,538 crore in Q3 FY23.

The bank said it has earned Rs 105,733.78 crore in interest income in Q3 FY24, which was up 22% from Rs 86,616.04 crore reported in the year-ago period. Of which, the bank paid Rs 66,918 crore in interests in the October-December quarter. The net interest income (NII) of the country's largest bank stood at Rs 39,815 crore, missing estimates of Rs 40,304 crore.

Whole Bank NIM for 9MFY24 decreased by 1 bp YoY to 3.28% while Domestic NIM for 9M FY24 decreased by 8 bps YoY to 3.41%.

The bank's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.64 per cent compared to 0.77 per cent last year. Bank’s returns on assets (RoA) for Q3FY24 stood at 0.62% while for 9MFY24 the RoA and returns on equity (ROE) stood at 0.94% and 19.47% respectively.

• Gross NPA ratio at 2.42% improved by 72 bps YoY.
• Net NPA ratio at 0.64% improved by 13 bps YoY.
• PCR (Incl. AUCA) stands at 91.49%. Provision Coverage Ratio (PCR) at 74.17%
declined by 195 bps YoY.
• Slippage Ratio for 9MFY24 improved by 5 bps YoY and stands at 0.67%. Slippage
Ratio for Q3FY24 increased by 17 bps YoY and stands at 0.58%.
• Credit Cost for Q3FY24 remained flat YoY at 0.21%.

The bank's operating profit for Q3 stood at Rs 20,336 crore.

> Credit growth at 14.38% YoY with Domestic Advances growing by 14.47% YoY.
> Corporate Advances and SME Advances cross Rs 10 lakh crore and Rs 4 lakh crores. respectively.
> Foreign Offices’ Advances grew by 13.90% YoY.
> Domestic Advances growth driven by SME Advances (19.24% YoY) followed by Agri Advances which grew by 18.12% YoY.
> Retail Personal Advances and Corporate loans registered YoY growth of 15.28% and 10.71%, respectively.
> Whole Bank Deposits grew at 13.02% YoY, out of which CASA Deposit grew by 4.48% YoY. CASA ratio stands at 41.18% as on December 31, 2023.

On Friday, the shares of SBI closed at Rs 648, 0.054 per cent higher, on the NSE.

The decline was as expected by analysts. Kotak Institutional Equities expected operating profit growth to be decline sharply by 18.3 per cent Y-o-Y to Rs 20,613 crore from Rs 25,219.3 crore earned in Q3FY23. 

"We are building net interest margin (NIM) to decline around 7 basis points Q-o-Q/19 bps Y-o-Y, but do see a possibility of stable performance given the structure of loan book and neglibile need for deposits to fund this growth. Operating expenses would be higher due to wage revision related costs (final settlement impact)," Kotak Institutional Equities said in its results preview report.

Also read: IndiGo Q3 results: Profit more than doubles to Rs 2,998 crore

Also read: Ambuja Cements vs ACC: Which Adani Group stock analyst prefer after Q3 results