SBI Results: In the third quarter of the current financial year, the profit of the largest state-run State Bank of India declined by 7 per cent to Rs 5196 crore. Earlier, the bank had a profit of Rs 5583 crore in the same quarter last year. SBI’s net interest income has been sluggish and there has been an increase in provisioning, which affected profits. However, the asset quality of the bank has improved. The bank’s credit growth and deposit growth have been positive.
3.7 Growth in Net Interest Income
SBI’s net interest income (NII) grew by 3.7 percent on an annual basis and stood at Rs 28,819.94 crore. At the same time, only 1.5 percent growth in non-interest income and it has been Rs 9246 crore. Due to the fall in fee income, other income has been affected.
Improvement in asset quality
In the third quarter, the gross NPA of the bank declined to 4.77 percent from 5.28 percent in the previous quarter. At the same time, net NPA has been reduced to 1.23 per cent from 1.59 per cent in the previous quarter.
In rupees, the gross NPA of the bank has been reduced from Rs 1.25 lakh crore in the previous quarter to Rs 1.17 lakh crore. At the same time, net NPA has been reduced to Rs 29031 crore from Rs 36450 crore in the previous quarter.
Credit growth 6.73
SBI’s credit growth in the third quarter was 6.73 per cent year-on-year. Retail growth advances were 15.47 percent year-on-year, SME growth 5.62 percent and corporate loan growth 2.23 percent. The loan book has grown by 8.16 percent on an annual basis.
At the same time, deposit growth has been 13.64 percent on an annual basis. Current account deposit growth was 11.33 percent on an annual basis, Savings Bank deposit growth was 15.99 percent on an annual basis. Net interest margin is stable at 3.12 per cent.
Provisioning
In the third quarter, the bank has provisioned an additional Rs 4,247 crore. The total provisioning of the bank in the third quarter was Rs 10,342 crore, which was Rs 10118 crore in the second quarter. SBI’s provisioning coverage ratio in the third quarter has increased from 88 percent to 90 percent in the second quarter.