SBI reports net profit of Rs 3,955 crore in Q3, net NPAs down by Rs 13,866 crore
MUMBAI: State Bank of India (SBI) on Friday reported a net profit of Rs 3,955 crore year-on-year for the third quarter of 2018-19 while its net loss stood at Rs 2,416 crore during the corresponding period of the previous fiscal. The net profit for Q2 2018-19 stood at Rs 945 crore. The SBI reported net interest income growth by 21.42 per cent to Rs 22,691 crore during the quarter ended December 31, 2018. As per a statement from the bank, total provisions for the quarter under review declined by 38.82 per cent to Rs 8,670 crore, compared to Rs 14,171 crore in Q3FY18. Below is the key highlights:
1. The Bank registered a Net Profit of Rs 3,955 Cr during Q3FY19 as against Net Loss of Rs. 2,416 Cr in corresponding period last year. Sequential growth is 318.56%
2. Robust Domestic credit off-take, mainly across Per. Retail & high rated Corporates, registering 15.65% YoY growth.
3. Net Interest Income grew by 21.42% YoY
4. Interest Income on Loans grew by 18.86% YoY attributable mainly to growth in domestic credit and lower slippages
5. Higher credit growth, better spreads and lower slippages lead to Domestic Net Interest Margins increasing to 2.97% during Q3FY19
6. Improvement in Slippage Ratio and Credit Cost by 459 bps and 105 bps YoY respectively.
7. Sustained improvement in Asset Quality with GNPA, Net NPA and PCR improving at 8.71%, 3.95% and 74.63% respectively.
The Bank registered a Net Profit of Rs.3,955 Cr which is largely attributable to:
* Domestic Credit Growth of 15.65% YoY.
* Better NIMs due to higher Yields on Advances, while Cost of Funds is flat.
* Improvement in Slippage ratio by 459 bps YoY.
* Improvement in Credit Cost by 105 bps YoY.
* Lower Overhead Expenses growth at 6.27% YoY.
* Write-back of MTM due to softening of bond yields.
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* Operating Profit increased by 7.40% YoY from Rs. 11,755 Cr in Q3FY18 to Rs 12,625 Cr in Q3FY19 driven by healthy growth in Net Interest Income and lower growth in Overhead Expenses.
* Net Interest Income registered a healthy growth of 21.42% YoY from Rs 18,688 Cr in Q3FY18 to Rs 22,691 Cr in Q3FY19.
* Interest Income on Loans increased by 18.86% YoY from Rs. 35,185 crore in Q3FY18 to Rs 41,821 Cr in Q3FY19 attributable mainly to growth in domestic credit and lower slippages.
* Growth in Interest Expenses on Deposits was contained at 5.73% YoY from Rs 33,549 crore in Q3FY18 to Rs 35,473 Cr in Q3FY19 despite a growth in deposits by 6.76% YoY
* Non-Interest Income declined by 0.61% YoY from Rs. 8,084 Cr in Q3FY18 to Rs 8,035 Cr in Q3FY19 mainly on account of decline in trading income by 58.56% YoY
* Recovery in Written-Off Accounts registered a robust growth of 55.98% YoY from Rs 1,351 Cr in Q3FY18 to Rs 2,107 crore in Q3FY19.
* Overhead Expenses growth was contained at 6.27% YoY from Rs. 6,520 crore in Q3FY18 to Rs 6,929 cr in Q3FY19.
* Gross NPAs of the Bank declined from Rs 2,05,864 Cr as on September 18 to Rs 1,87,765 Cr as on December 18, whereas Net NPAs declined from Rs 94,810 Cr to Rs. 80,944 Cr during the same period.
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