SBI records 41 per cent jump in Q3 net profit at Rs 5,583 crore
The bank says this is the highest ever quarterly net profit recorded by it
by Our BureauState Bank of India (SBI) reported a robust 41 per cent jump in net profit at Rs 5,583 crore in the third quarter ended December 31, 2019 against Rs 3,955 crore in the year ago quarter. The bank said this is the highest ever quarterly net profit recorded by it.
The bottomline was supported by a healthy rise in net interest income and a steep decline in provisioning requirement towards bad loans.
During the quarter, SBI exercised the option of lower tax rate taking a one-time hit of Rs. 1,333 crore.
Excluding the impact of this one-time additional hit, the bank, in a statement, said net profit in Q3FY20 would have been Rs. 6,916 crore.
The net interest income was up 22 per cent year-on-year (yoy) at Rs 27,779 crore (Rs 22,691 crore) in the year ago period. Other income increase by 13 per cent at Rs 9,106 crore (Rs 8,035 crore in the year ago period).
The loan loss provisioning requirement declined 41 per cent to Rs 8,193 crore against Rs 13,971 crore in the year ago quarter.
Slippages during the reporting quarter jumped to Rs 16,525 crore (Rs 8,805 crore in the preceding quarter) includes exposure to a large Housing Finance Company (about Rs 7000 crore), the bank said in a statement.
Gross non-performing assets (GNPAs) declined by Rs 1,975 crore during the reporting quarter to stand at Rs 1,59,661 crore as at December-end 2019.
GNPA declined to 6.94 per cent of gross advances in the reporting quarter against 7.19 per cent in the preceding quarter. Net NPAs declined to 2.65 per cent of net advances in the reporting quarter against 2.79 per cent in the preceding quarter.
Credit growth at 6.79 per cent year-on-year (y-o-y) was mainly driven by retail-personal advances, which grew by 17.49 per cent yoy. Deposits grew 9.92 per cent y-o-y to Rs 31,11,229 crore.