State Bank of India reported a net profit of Rs 5,196 crore in the December quarter, a 7 per cent drop from Rs 5,583 crore reported in the same quarter of the previous year. SBI shares were trading 1 per cent higher in noon trade. However, sequentially, SBI’s profit rose 13.6 per cent as compared to Rs 4,574 crore posted in the September quarter. SBI was expected to post a net profit of Rs 4,850 crore in the three months to December 2020, lower than Rs 5,583.36 crore in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.

Here are highlights from SBI Q3 results:

1. SBI’s credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%
2. The 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%.
3. Net Profit for 9MFY21 at Rs. 13,960 crores, has increased by 27.99% YoY as against Rs. 10,907 crores in 9MFY20.
4. Net Interest Income for Q3FY21 increased to 2.27% sequentially and 3.75% YoY.
5. Domestic NIM for the quarter at 3.34%, has remained stable sequentially.
6. Non-Interest Income for Q3FY21 at Rs.9,246 Crores grew by 8.42% sequentially and 1.54% YoY.
7. 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.

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.

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