SBI Q3 Results: Net profit jumps 68.5% to record Rs 14,205 crore, far exceeds analysts' expectations

State Bank of India (SBI) — the country's largest lender by assets — on Friday reported a 68.5 per cent jump in net profit to a record Rs 14,205.3 crore for the quarter ended December 2022 compared with the corresponding period a year ago. 

The PSU banking major's net interest income (NII) — or the difference between interest earned and interest paid — increased 24.1 per cent on a year-on-year basis to Rs 38,068.6 crore, according to a regulatory filing. 

Both topline and bottomline far exceeded analysts' expectations.

According to Zee Business research, SBI's quarterly net profit was estimated at Rs 13,400 crore and NII at Rs 37,300 crore.  

State Bank of India's net interest margin — a key measure of profitability for lenders — improved by 14 basis points on a quarter-on-quarter basis to 3.69 per cent, according to a company statement. 

The bank's asset quality improved, reflected in its gross non-performing assets (NPAs) as a percentage of total loans, which contracted by 38 basis points sequentially to 3.14 per cent.  

Its net NPAs — or bad loans — narrowed to 0.77 per cent from 0.80 per cent in the quarter ended September 2022.

SBI reported credit growth of 17.6 per cent for the October-December period compared with the year-ago period, with expansion of 16.91 per cent in domestic advances. 

According to Zee Business research, the lender's loan growth for the three-month period was pegged in the range of 18-20 per cent.  

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SBI shares ended stronger by Rs 16.5 or 3.1 per cent at Rs 544.5 apiece on BSE ahead of the earnings announcement. 

The stock rewarded investors with a return of 15.5 per cent in the quarter ended December 2022, outperforming a 5.9 per cent rise each in headline indices Sensex and Nifty50.

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