State Bank of India, (SBI) has announced its third quarter results. The company's Q3 net profit was up 14.08 % at Rs 2,828 crore versus Rs 2,479.1 crore (YoY) despite an increase in the provisions by Rs 1,797 crore (84.02%).
Its net interest income (NII) stood at Rs 9,050 crore versus Rs 6,316.3 crore. The bank saw its total provisions go up to Rs 2,051 crore versus Rs 857 crore, YoY. Also read: Expect increase in NPAs for SBI in Q4: Karvy SBI STAND ALONE RESULTS Q3FY11 Over Q3FY10-
Operating Profit recorded a YOY growth of 46.48% in Q3FY11 over Q3FY10 against a growth of 3.02% recorded in Q3FY10 over Q3FY09
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Net Profit for Q3FY11 at Rs 2828 crore up by 14.08% over Net Profit of Rs 2479 crore in Q3FY10 despite increase in provisions by Rs 1797 crore (84.02%). Loan loss provision of Rs 1632 crore made in Q3FY11 (Rs 515 crore in Q3FY10) includes Rs 452 crore made in excess of IRAC norms to enable the Bank to reach a provision cover ratio of 64.07%. Excluding this, Net Profit at Rs 3280 crore is up by 32.31% YOY
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NII increased by 43.28% in Q3FY11 over Q3FY10 against a growth of 9.69% recorded in December 09
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Growth in Interest expenses on deposits contained at 3.22% during Q3FY11 due to robust growth in CASA deposits which have increased by 27.71%. CASA Ratio increased by 523 bps from 42.94% in Dec 09 to 48.17% in December 10
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Interest income on advances has increased by 24.35% YOY during Q3FY11 against a decline of 1.54% during Q3FY10 driven by a growth of 21.88% in advances
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Interest income from resource operations increased by 12.56% due to increase in interest earned on investments by 16.32%
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While cumulative NIM improved significantly by 84 bps to 3.40% as on December 10 from 2.56% as at the end of December 09, it improved by 74 bps from 2.66% in March 10
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Sequentially also, NIM continues to improve from 3.18% in Q1FY11, 3.43% in Q2FY11 to 3.61% in Q3FY11
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Fee income went up by 13.12% YOY in Q3FY11. Due to change in accounting, net ATM interchange fee of Rs 222 crore for the entire 9MFY10 was added to fee income in Q3FY10. Adjusting on pro rata basis, YOY growth in fee income would be 21.32% for Q3FY11. The major contributors to fee income growth were commission from government business, commission from cross selling, loan processing charges, underwriting fees and commission from LC/BG business
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Total non interest income declined by 1.54% mainly due to decline in growth in profit on sale of investments by 49.61% (Rs 217 crore). Non Interest Income excluding profit on sale of investments is up by 5.63%. Operating Expenses have increased by 10.57% YOY
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Staff Expenses have increased by 12.64% YOY driven by higher provisions for gratuity of Rs 140 crore and higher payment to employees by Rs 289 crore (11.39%) mainly due to increase in DA and provisions for leave encashment, LTC/HTC etc
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Growth in overheads restricted to 7.25% against a growth of 33.72% in Q3FY10
- Provisions for NPAs also went up at Rs 1,632 crore versus Rs 515 crore, YoY. Pension Liabilities was at Rs 140 crore while their ninth month pension liabilities was at Rs 1,540 crore
- Net NPAs was down at 1.61% versus 1.88%, YoY
- Provision Coverage Ratio at 64.07%
- Capital Adequacy Ratio At 13.16%
| Also Read Other Results: |
| Bharat Forge Q3 net profit up at Rs 82.6 cr |
| Chambal Fert Q3 net profit up at Rs 107.4 cr |
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