State Bank of India Reports 29% Decline in Q3 Profit
State Bank of India (SBI) has announced a 29% decrease in its fiscal third quarter profit compared to the same period last year. The decline can be attributed to provisions made for pensions, which outweighed the higher revenue generated.
For the quarter ended December 31, SBI recorded a consolidated net profit of INR110.64 billion ($1.33 billion). However, the total income witnessed a positive growth of 20% year-on-year, amounting to INR1.531 trillion.
When examined on a standalone basis, SBI's net interest income saw a rise of 4.6% year-on-year, reaching INR398.16 billion. Conversely, noninterest income experienced a slight decline of 0.1%, totaling INR114.59 billion. Furthermore, the operating profit dropped by 19% compared to the previous year due to a substantial increase of 27% in operating expenses.
SBI disclosed that it had allocated INR71.00 billion for provisions related to a one-time increase in pension liabilities.
Despite these challenges, SBI expressed confidence in India's macroeconomic indicators, stating that the country's gross domestic product growth outlook remains promising. However, it acknowledged that there is a discrepancy between deposit and credit growth, emphasizing the need for sustained credit growth momentum.
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