SBI December Quarter Net Profit Rises 62% to Rs 8,432 Crore

Country's biggest lender State Bank India (SBI) reported a 62 per cent year on year (YoY) rise in its net profit, which rose to Rs 8,431.9 crore for the quarter ending December.

The bank had earned a 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 per cent YoY," SBI said in a regulatory filing.

The state-owned lender's net interest income for the reported quarter grew 6.5 percent year-on-year to Rs 30,687 crore. However, the net interest margin improved 6 basis points year-on-year to 3.4 percent, which was in line with expectations.

On a consolidated basis, the SBI Group clocked 51 per cent increase in net profit at Rs 9,692 crore during the quarter as against Rs 6,402 crore in the year-ago period.

The bank's asset quality improved as gross non-performing assets fell to 4.5 per cent of gross advances as of December 31, 2021 from 4.77 per cent by the year-ago same period.

However, net NPAs rose marginally to 1.34 per cent from 1.23 per cent at the end of the third quarter of 2020-21.

Provisions other than tax and contingencies for the quarter declined to Rs 6,974 crore from Rs 10,342 crore a year earlier.

Provision coverage ratio (PCR) as at the end of the third quarter this fiscal year stood at 88.32 per cent, it said.

"Capital adequacy ratio (CAR) as at the end of the third quarter of the current fiscal stands at 13.23 per cent without including nine months profit for 2021-22. If we include profit of three quarters, the CAR will improve by 94 basis points," it said.