The country s largest bank reported a net profit of ₹9,164 crore for the third quarter against ₹14,205 crore a year earlier. It made provisions of ₹13,413 crore to deal with impending pension and wage hikes. "The provisions are one-time items," SBI chairman Dinesh Khara said. "We had to correct anomalies in our pension and dearness allowances after a ruling in a court case, which was going on since 2022.," he said.
SBI Q3 preview: Core operating profit could see a sharp 26% YoY drop in the third quarter, according to Nomura, with key monitorables to be comments on unsecured loan growth, capital adequacy and loan book traction.
SBI's gross non-performing asset (NPA) stood at 2.42%, down from 3.14% recorded in the corresponding quarter last year. Its net NPA for this quarter stood at 0.64 percent compared to 0.77 percent last year.
Net interest income is likely to grow around 6% year-on-year (YoY) in the December quarter, according to an average estimate of five brokerages. Net profit for the same period is seen declining 12% YoY.
PSU banks are expected to benefit from the interim budget 2024 as the fiscal deficit is expected to decrease. Increase in fund allocation to infrastructure sector to fuel corporate credit demand