SBI Q3 net falls 34% to Rs 2234 cr, asset quality weakens

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26 Aug, 2025 12:21

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Moneycontrol Bureau

India's largest lender State Bank of India (SBI) disappointed street with the net profit falling 34.2 percent year-on-year to Rs 2,234.34 crore in the quarter ended December 2013, dented by higher provisions and expenses.

"Profit after tax was down on one-time pension provision, mark-to-market loss and deferred tax liability," chief Arundhati Bhattacharya in press conference said.

Analysts had expected the bank to report profit after tax of Rs 2,500 crore (down 26 percent) and net interest income of Rs 12,669 crore (up 14 percent) for the quarter.

Net interest income increased 13.3 percent to Rs 12,640 crore from Rs 11,154 crore year-on-year.

Total expenses shot up 20 percent to Rs 31,442.3 crore while other income of the bank jumped 15.5 percent to Rs 4,190.30 crore compared to same quarter last year.

Employee expenses increased 35 percent year-on-year to Rs 5,867 crore in Q3FY14 due to higher provisions for salary and pension.

Domestic net interest margin improved sequentially to 3.51 percent versus 3.48 percent during the quarter.

Asset quality

Gross non-performing assets (NPAs) as a percentage of gross advances increased to 5.73 percent in Q3FY14 as against 5.64 percent in Q2FY14 and 5.3 percent in Q3FY13 while net NPAs rose to 3.24 percent from Rs 2.91 percent and Rs 2.59 percent during the same period.

Bhattacharya said the bank would be in a better position to control slippages going forward. "We changed 'stressed asset recast group' for recovery of NPA."

In absolute term, gross NPAs were up 5.6 percent (up 26.8 percent Y-o-Y) to Rs 67,799.3 crore and net NPAs climbed 15.6 percent (up 46.5 percent on yearly basis) to Rs 37,167.35 crore compared to previous quarter.

Provisions and contingencies spiked 37 percent sequentially (up 55.5 percent on yearly basis) to Rs 4,149.6 crore, including provision for non-performing assets that jumped 29.6 percent quarter-on-quarter (up 24 percent Y-o-Y) to Rs 3,428.6 crore during December quarter.

Provision coverage ratio declined to 58.32 percent from 60.16 percent on sequential basis.

Fresh slippages during the quarter were Rs 11,438 crore as against Rs 8,365 crore in previous quarter while cash recovery stood at Rs 1,538 crore in the quarter gone by.

Net slippages for the quarter were Rs 3,593 crore as against Rs 4,568 crore quarter-on-quarter.

The bank restructured assets worth Rs 3,900 crore in the third quarter that is lower compared to Rs 8,585 crore in second quarter of current financial year 2013-14.

State Bank of India's upgradation of accounts for the quarter were Rs 1,230 crore while write-off stood at Rs 5,077 crore.

Total advances of the bank increased 17.3 percent to Rs 11.5 lakh crore and deposits grew 16.4 percent to Rs 13.5 lakh crore compared to same quarter last fiscal.

Meanwhile, SBI provided for a net depreciation to the extent of Rs 1,267.92 crore for the quarter on the available for sale and held for trading portfolio.

At 13:55 hours IST, the stock was down 2.37 percent to Rs 1,464.05 amid high volumes on the BSE.