State Bank of India (SBI) reported a 41.18% jump in standalone net profit to Rs 5583.36 crore in Q3 December 2019 over Q3 December 2018.
SBI said that this is the highest ever quarterly net profit recorded by the bank. During the quarter, bank exercised the option of lower tax ratetaking a one-time hit of Rs 1,333 crore. Excluding the impact of this one-time additional hit, net profit in Q3FY20 would have been Rs 6,916 crore.Profit before Tax (PBT) for Q3FY20 stood at Rs 10,970 crore, increasing 65.74% year on year.
Total income rose 9.22% to Rs Rs 76797.91 crore in Q3 December 2019 over Q3 December 2018. Net interest income (NII) increased by 22.42% to Rs 27,779 on YoY basis. Net Interest Margin (NIM) improved to 3.59% in Q3FY20 from 2.97% reported in Q3FY19.
The bank's asset quality improved. Gross non-performing assets (NPAs) stood at Rs 1,59,661.19 crore as on 31 December 2019 as against Rs 1,61,635.05 crore as on 30 September 2019 and Rs 1,87,764.57 crore as on 31 December 2018.
The ratio of gross NPAs to gross advances stood at 6.94% as on 31 December 2019 as against 7.19% as on 30 September 2019 and 8.71% as on 31 December 2018. The ratio of net NPAs to net advances stood at 2.65% as on 31 December 2019 as against 2.79% as on 30 September 2019 and 3.95% as on 31 December 2018.
The bank's provisions and contingencies (excluding tax provisions) reduced 41.35% to Rs 8193.06 crore in Q3 December 2019 as against Rs 13970.42 crore posted in Q3 December 2018.
SBI reported fresh slippages of Rs 16252 crore which include exposure to Housing Finance Company (approximately Rs 7000 cr).
Provision Coverage Ratio as on 31 December 2019 stood at 81.73%, up 710 basis points YoY. Capital Adequacy Ratio (CAR) has improved to 13.73% as on Dec 2019, an increase of 96 basis points from Dec 2018.
As on 31 December 2019, the Government of India holds 57.68% stake in the bank.
Shares of SBI gained 2.57% to Rs 318.70. The stock hit a high of Rs 321.60 and a low of Rs 308.70 so far.
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