State Bank of India (SBI) on Thursday reported a 6.9 per cent year-on-year (YoY) decline in net profit for October-December quarter at Rs 5,196 crore. Sequentially, net profit rose 13.60 per cent from Rs 4,574 cr in preceding July-September quarter.
The bank's net interest income rose 3.8 per cent YoY to Rs 28,820 crore. On a quarter-on-quarter (QoQ) basis, it rose 2.3 per cent from Rs 28,181 crore in September quarter. Its net interest margin (NIM) contracted 21 basis points to 3.12 per cent, while domestic NIM contracted 25 basis points to 3.34 per cent.
Domestic current account and saving account (CASA) deposits rose 15.5 per cent to Rs 15.46 lakh crore, while CASA ratio expanded 43 basis points to 45.15 per cent.
SBI's gross advances rose 6.7 per cent YoY to Rs 24.56 lakh crore, led by a pre-COVID level growth of 15.5 per cent in retail loans. Home loans, which constitute 23 per cent of bank's domestic advances, also grew by 10 per cent.
SBI's gross non-performing assets (NPA) ratio was at 4.77 per cent in December quarter, while net NPA ratio stood at 1.23 per cent. In value terms, gross NPA stood at Rs 1.17 lakh crore, while net NPA were at Rs 29,032 crore.
The bank's gross and net NPA ratios would have been higher at 5.44 per cent and 1.81 per cent, respectively, if not for the Supreme Court order directing that accounts not declared as NPA till August 31, 2020 should not be declared as NPA till further orders.
"Pending the disposal of the case, the bank has made a provision of Rs 5,265 crore as at December 31, 2020 in respect of these accounts (including unrealised interest) as a matter of prudence," the bank said.
The bank's provision coverage ratio stood at 90.21 per cent as on December 31, 2020 as against 81.73 per cent a year ago. Without the Supreme Court order, the provision coverage ratio would have been at 86.33 per cent.
On a consolidated basis, SBI's net profit fell 4.2 per cent YoY to Rs 6,258 crore. Sequentially, it rose 19.3 per cent from Rs 5,246 crore in July-September quarter.