SBI logs Rs 4,709 cr Q3 net... after big loss in Q3 FY18
Mumbai: A healthy improvement in asset quality and a drastic dip in loan loss provisions, helped State Bank of India, which controls over two-fifths of the nation's banking system, Friday report a consolidated net income of Rs 4,709.15 crore for the December quarter as against a net loss of Rs 1,886.57 crore a year ago.
On a standalone basis, the nation's largest lender booked a net profit of Rs 3,955 crore compared to a net loss of Rs 2,416.37 crore in the year-ago period. "The December quarter performance shows excellent improvement in all parameters, including profit, business growth and asset quality," chairman Rajnish Kumar told reporters in a concall this afternoon.
Showing better asset quality, the gross non-performing assets ratio came down to 8.71 from 10.35, while the net NPA ratio also improved to 3.95 from 5.61. Total provisions fell 39 percent to Rs 8,670 crore in the quarter from Rs 14,171 crore in the same period last year. Accordingly, loan loss provisions came down to Rs 13,971 crore, down 21.33 percent, from Rs 17,760 crore.
Reflecting the overall improvement in credit off-take, net interest income grew at a healthy 21.42 percent to Rs 22,691 crore year-on-year, helping the bank report an improved domestic margins at 2.92 percent from 2.67 percent.
Kumar said there are eight stressed accounts, including three from the power sector, that are in the very advance stage of resolution. "If all these accounts get resolved in the next two months, then we are looking at a situation where our gross NPAs will slip below 7 percent and net NPA to under 3 percent."