SBI Q3 results: Net profit surges 62% to Rs 8,432 cr on lower provisions

Country's largest public sector lender State Bank of India on Saturday reported 62% jump in net profit at Rs 8,432 crore for the quarter ending December, 2021, helped by lower provisions for bad loans. The Mumbai-based lender reported net profit of Rs 5,196 crore in the year-ago period.

"Bank has registered its highest quarterly net profit of Rs 8,432 crore in Q3FY22. This represents an increase of 62.27% YoY," SBI said in a regulatory filing.

Most Indian banks have reported stronger profits for the December quarter on improved lending in the final months of the year as coronavirus restrictions were lifted.

SBI said its domestic loans grew 6.47% year-on-year in the quarter, led by strong growth in retail loans. Total provisions and contingencies for bad loans fell 33% on year to Rs 6,974 crore from Rs 10,342 crore in Q3FY21.

The bank's gross bad loan ratio, a measure of asset quality, fell to 4.5% from 4.90% a quarter earlier. However, net NPAs rose marginally to 1.34% from 1.23% at the end of the third quarter of 2020-21. 

Net interest income rose 6.5% to Rs 30,687 crore, while its net interest margin, a key indicator of a bank's profitability, was 3.4%, up 6 basis points from a year ago.

Provision Coverage Ratio (PCR) as at the end of the third quarter this fiscal year stood at 88.32%, it said.

"Capital Adequacy Ratio (CAR) as at the end of Q3FY22 stands at 13.23% without including nine months profit for FY22. If we include profit of three quarters, the CAR will improve by 94 basis points," it said.

On Friday, the lender's scrip on BSE closed nearly 2% lower at Rs 529.45.