SBI Q3 results: Net profit slides to ₹5,196 crore but beats estimates

[NiveRoshni]

SBI Q3 results: Net profit slides to ₹5,196 crore but beats estimates



SBI's credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%
Results are positive for SBI shares and can drive further re-rating, Yes Securities said

Indian biggest bank State Bank of India reported a net profit of ₹5,196 crore in the December quarter, a 7% drop from ₹5,583 crore reported in the same quarter of the previous year.

SBI shares were trading 1% higher in noon trade.

However, sequentially, SBI's profit rose 13.6% as compared to Rs.4,574 crore posted in the September quarter.

SBI was expected to post a net profit of ₹4,850 crore in the three months to December 2020, lower than ₹5,583.36 crore in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.

"Loan growth was ahead of estimates at 3% qoq and 7% yoy - driven by sustained strong traction in retail portfolio (up 15.5% yoy) - including investments in Corporate Bonds & CPs (credit substitutes), the loan growth stood is at 8% yoy. Domestic NIM for the quarter at 3.34%, has remained stable sequentially," Yes Securities said in a note.

"Results are positive for the stock and can drive further re-rating," the brokerage added.

Here are highlights from SBI Q3 results:


SBI's credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%

Bank registered an Operating Profit of Rs. 17,333 Crores in Q3FY21 as compared to Rs.16,460 Crores in Q2FY21, an increase of 5.31% sequentially. Year on year Operating Profit has come down by 4.88%.

Net Profit for 9MFY21 at Rs. 13,960 crores, has increased by 27.99% YoY as against Rs. 10,907 crores in 9MFY20.

Total Deposits grew at 13.64% YoY, out of which Current Account Deposit grew by 11.33% YoY, while Saving Bank Deposits grew by 15.99% YoY.

Home loan, which constitutes 23% of Bank's domestic advances, has grown by 9.99% YoY.

Net NPA ratio at 1.23% is down 142 bps YoY and 36 bps QoQ. Gross NPA ratio at 4.77% is down 217 bps YoY and 51 bps QoQ.

However, if the bank had classified borrower accounts as non-performing after 31 August 2020, its proforma gross NPA ratio and proforma net NPA ratio would have been 5.4% and 1.8%, respectively.

Provision Coverage Ratio (PCR) has improved to 90.21%, up 848 bps YoY and 202 bps QoQ.

Slippages Ratio for 9MFY21 has declined to 0.36% from 2.42% as at the end of 9MFY20.

Credit Cost as at the end of 9MFY21 has declined 85 bps YoY to 0.38%.

Cost to Income Ratio has marginally increased from 52.45% in 9MFY20 to 53.25% in 9MFY21.

Capital Adequacy Ratio (CAR) has improved by 77 bps YoY to 14.50% as on Dec 2020.

Return on Assets (RoA) increased by 6 bps YoY to 0.45% in 9MFY21 against 0.39% in 9MFY20

Source : https://www.livemint.com/companies/company-results/sbi-q3-results-net-profit-slides-to-rs-5-196-crore-but-beats-estimates/amp-11612426514342.html