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SBI Q3 net profit drops 7 pc to Rs 5,196 cr on higher provisions

SBI Q3 net profit drops 7 pc to Rs 5,196 cr on higher provisions

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Mumbai (Maharashtra) [India], February 4 (ANI): Government-owned State Bank of India (SBI) on Thursday reported 7 per cent year-on-year drop in net profit at Rs 5,196 crore for December quarter due to increase in provisions against bad loans.
India's largest public sector bank had posted a net profit of Rs 5,583 crore in Q3 FY20. On a quarterly basis, the profit after tax grew by 13.6 per cent from Rs 4,574 crore reported in the September quarter (Q2 FY21).
SBI registered an operating profit of Rs 17,333 crore in Q3 FY21 as compared to Rs 16,460 crore in Q2 FY21, marking an increase of 5.3 per cent sequentially. On a year-on-year basis, the operating profit came down by 4.8 per cent.
"Excluding the one-off interest income and other income during Q3 FY20, the year-on-year growth in net profit and operating profit would be 133.78 per cent and 26.23 per cent respectively," it said in regulatory filings at stock exchanges.
The net profit for 9M FY21 at Rs 13,960 crore increased by 28 per cent year-on-year as against Rs 10,907 crore in 9M FY20.
SBI said its net interest income for Q3 FY21 increased by 2.27 per cent sequentially and 3.75 per cent year-on-year. The domestic NIM for the quarter at 3.34 per cent remained stable sequentially.
Non-interest income for Q3 FY21 at Rs 9,246 crore grew by 8.4 per cent sequentially and 1.5 per cent year-on-year. Total deposits grew at 13.6 per cent year-on-year of which current account deposit grew by 11.3 per cent while saving bank deposits grew by 16 per cent.
The credit growth stood at 6.7 mainly per cent year-on-year driven by retail (personal) advances (15.4 per cent year-on-year), SME (5.6 per cent year-on-year) and corporate advances (2.2 per cent year-on-year).
Home loan which constitutes 23 per cent of the bank's domestic advances moved up by nearly 10 per cent year-on-year.
The net non-performing asset (NPA) ratio at 1.23 per cent was down 142 basis points year-on-year and 36 basis points quarter-on-quarter. Gross NPA ratio at 4.77 per cent is down 217 basis points year-on-year and 51 basis points year-on-year,
The capital adequacy ratio has improved by 77 basis points year-on-year to 14.5 per cent as on December 2020, said SBI. (ANI)

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