SBI Q3 financial report: SBI's third-quarter financial report reveals a 35% drop in net profit, amounting to ₹9,164 crore.

SBI Q3 financial report: During the initial nine months of the financial year 2024, the bank recorded a profit of ₹40,378 crore, reflecting a notable 20.40% growth in comparison to the corresponding period in the preceding fiscal year, which posted a profit of ₹33,538 crore.

On February 3, the State Bank of India (SBI) disclosed a standalone net profit of ₹9,164 crore for the third quarter, marking a 35% decrease in the December quarter, according to a filing with the stock exchange. The bank attributed the decline in net profit for the October-December period to elevated operating expenses.

Achievements and Results

During the initial nine months of the financial year 2024, the bank recorded a profit of ₹40,378 crore. This represents a substantial 20.40% growth when compared to the corresponding period in the preceding fiscal year, which reported a profit of ₹33,538 crore.

The bank witnessed a growth of approximately 14.38% year-on-year (YoY) across all its segments. Notably, corporate advances exceeded ₹10 trillion, and SME advances surpassed ₹4 trillion, showcasing expansion in both sectors.

In terms of financial indicators, the Return on Assets (ROA) for the first nine months of FY24 experienced a 0.94% increase, rising by 7 basis points (bps) compared to the same period in FY23. Additionally, the Return on Equity (ROE) stood at 19.47% for 9MFY24, displaying an 88 bps improvement over the corresponding period in the preceding fiscal year.

There were positive developments in asset quality metrics as well. Gross Non-Performing Assets (NPA) showed improvement, standing at 2.42%, reflecting a reduction of 72 bps compared to the previous year. Net NPA also improved, reaching 0.64%, down by 13 bps YoY. The Credit Cost for 9MFY24 was reported at 0.25%, indicating a 12 bps improvement from the same period in the previous fiscal year.

The Provision Coverage Ratio (PCR) achieved a level of 74.17%, and when factoring in the Additional Unsecured Credit Amount (AUCA), it reached 91.49%. Additionally, total non-Non-Performing Asset (NPA) provisions, not encompassed in the PCR, totaled ₹33,472 crore, accounting for roughly 149% of Net NPAs at the conclusion of Q3FY24.