State Bank of India posted its quarterly results for Q3 FY22 on February 5, 2022. The bank reported a 62% year on year (YoY) jump in its standalone profit after tax (PAT) which came in at Rs 8,432 crore from Rs 5,196 crore in the year ago period. On a sequential basis, the PAT jumped by 10.5% from Rs 7,627 crore in Q2 FY22.
The interest earned in the quarter under review was up at Rs 69,678 crore from Rs 66,734 in the year-ago period, however, the interest earned remained flat on a QoQ basis. Consequently, the Net Interest Income (NII) for the bank was up 6.4% YoY to Rs 30,687 crore from Rs 28,820 crore. On a sequential basis, the NII dropped by 1.6% from Rs 31,184 crore in the previous quarter.
SBI’s Net Interest Margin (NIM) was up by a marginal 6 base points YoY to 3.4% from 3.34% in the corresponding quarter in the previous financial year while the same on a QoQ basis is down 10 base points.
The bank’s operating profit jumped by 6.8% to Rs 18,522 crore in the quarter under review, the same remained largely flat on a QoQ basis.
SBI’s gross NPA has come down to 4.50% in the October-December 2021 quarter from 4.90% in the previous quarter and 4.77% in the year-ago period. The Net NPA, on the other hand, has come down to 1.34% from 1.52% in the previous quarter, but is up from 1.23% in the year-ago period. The bank’s return on assets (RoA) has also improved to 0.71% from 0.66% in Q2 FY22 and 0.49% in Q3 FY21.
The bank said strong growth was seen in the personal retail segment, driven by home loans, Xpress credit and other loans. Corporate & SME credit also picked up during the quarter, it said.
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Research Analyst: Bavadharini KS