SBI net profit falls 36% to 9,164 crore

THE country’s largest lender, government-owned State Bank of India (SBI), has announced underwhelming third quarter financial results with net profit showing a yearon-year decline of 35.5% to R9,164 crore. This is below the market expectation of over R13,200 crore.

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The decline was owing to one-time expense of R7,100 crore on account of the estimated liability of pension in place of its existing dual rate of calculation of pension and ex-gratia benefit and neutralization of dearness relief to pre-November 2002 retirees and family pensioners.

The bank also missed the market estimate for Net Interest Income (NII). The third quarter FY24 NII of the bank grew at 4.6% year-on-year to R 39,816 crore against the market estimate of over R40,100 crore. Non-interest income in the third quarter also registered a small decline at R11,459 crore compared to R11,468 crore in the same quarter last year. However, sequentially non-interest income grew at 6.19% over R10,791 crore. Fee income of the banks grew at 5.3% to R6,241 crore.