SBI declares Q3 results : Net profit drops 7%

Logo of India's largest banker, SBI

The country’s largest state-owned bank, State Bank of India, SBI, declared its Q3 results today. The net profit was lower by 7%, at ₹5069.5 crores, as compared to the quarter ended December 2020. This is much higher than the estimates by several experts.

SBI shares ended the day higher by 6.55% on the NSE and by 5.73% on the BSE.

SBI Q3 results highlights

  • SBI’s credit growth during the quarter stood at 6.73% year on year, mainly driven by retail advances, which rose 15.5%
  • Bank registered an Operating Profit of Rs. 17,333 Crores in Q3FY21 as compared to Rs.16,460 Crores in Q2FY21, an increase of 5.31% sequentially. Year on year Operating Profit has come down by 4.88%.
  • Net Profit for 9MFY21 at Rs. 13,960 crores, has increased by 27.99% YoY as against Rs. 10,907 crores in 9MFY20.
  • Net Interest Income for Q3FY21 increased to 2.27% sequentially and 3.75% YoY.
  • Domestic NIM for the quarter at 3.34%, has remained stable sequentially.
  • Non-Interest Income for Q3FY21 at Rs.9,246 Crores grew by 8.42% sequentially and 1.54% YoY.
  • Total Deposits grew at 13.64% YoY, out of which Current Account Deposit grew by 11.33% YoY, while Saving Bank Deposits grew by 15.99% YoY.
  • Home loan, which constitutes 23% of Bank’s domestic advances, has grown by 9.99% YoY.
  • Net NPA ratio at 1.23% is down 142 bps YoY and 36 bps QoQ. Gross NPA ratio at 4.77% is down 217 bps YoY and 51 bps QoQ.
  • However, if the bank had classified borrower accounts as non-performing after 31 August 2020, its proforma gross NPA ratio and proforma net NPA ratio would have been 5.4% and 1.8%, respectively.
  • Provision Coverage Ratio (PCR) has improved to 90.21%, up 848 bps YoY and 202 bps QoQ.
  • Slippages Ratio for 9MFY21 has declined to 0.36% from 2.42% as at the end of 9MFY20.
  • Credit Cost as at the end of 9MFY21 has declined 85 bps YoY to 0.38%.
  • Cost to Income Ratio has marginally increased from 52.45% in 9MFY20 to 53.25% in 9MFY21.
  • Capital Adequacy Ratio (CAR) has improved by 77 bps YoY to 14.50% as on Dec 2020.
  • Return on Assets (RoA) increased by 6 bps YoY to 0.45% in 9MFY21 against 0.39% in 9MFY20


SBI Q3 results were much better than expected, and this has the potential to drive stock prices up even higher, thus resulting in both near and mid-term gains.

HDFC too had reported a drop in net profit of 65% in its Q3 results.

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