SBI Q3 Results 2022

State Bank of India posted its quarterly results for Q3 FY22 on February 5, 2022. The bank reported a 62% year on year (YoY) jump in its standalone profit after tax (PAT) which came in at Rs 8,432 crore from Rs 5,196 crore in the year ago period. On a sequential basis, the PAT jumped by 10.5% from Rs 7,627 crore in Q2 FY22.

The interest earned in the quarter under review was up at Rs 69,678 crore from Rs 66,734 in the year-ago period, however, the interest earned remained flat on a QoQ basis. Consequently, the Net Interest Income (NII) for the bank was up 6.4% YoY to Rs 30,687 crore from Rs 28,820 crore. On a sequential basis, the NII dropped by 1.6% from Rs 31,184 crore in the previous quarter.?

SBI’s Net Interest Margin (NIM) was up by a marginal 6 base points YoY to 3.4% from 3.34% in the corresponding quarter in the previous financial year while the same on a QoQ basis is down 10 base points.

The bank’s operating profit jumped by 6.8% to Rs 18,522 crore in the quarter under review, the same remained largely flat on a QoQ basis.?

SBI’s gross NPA has come down to 4.50% in the October-December 2021 quarter from 4.90% in the previous quarter and 4.77% in the year-ago period. The Net NPA, on the other hand, has come down to 1.34% from 1.52% in the previous quarter, but is up from 1.23% in the year-ago period. The bank’s return on assets (RoA) has also improved to 0.71% from 0.66% in Q2 FY22 and 0.49% in Q3 FY21.

Hits of SBI Q3 Results 2022

• PAT up 62.27% YoY to Rs 8,432 crore from Rs 5,196 crore in the year-ago period
• Gross NPA down to 4.50 from 4.90 in the previous quarter and 4.77 in the year-ago period
• Total Deposits grew at 8.83% YoY. Saving Bank Deposits grew by 10.30% YoY while Current Account Deposits grew by 7.89% YoY
• Home loan, which constitutes ~24% of Bank’s domestic advances, has grown by 11.15% YoY
• Net NPA down to 1.34 from 1.23 in the year-ago period

Misses

• Net Interest Margin (NIM) down by 10 base points QoQ to 3.4% from 3.5% in the previous quarter
• Net Interest Income (NII) down by 1.5% QoQ to Rs 30,687 crore from Rs 31,184 crore in the previous quarter
• Net NPA up to 1.34 in the quarter under review from 1.52 in the previous quarter
• Capital Adequacy Ratio (CAR) down to 13.23 from 13.35 in the previous quarter and 14.50 in the year ago period.
• Loan loss provisions up by 36% YoY, 14.7% QoQ to Rs 3,096 crore in the quarter under review

Segment-wise revenue

• Treasury operations: Revenue up by 9.7% YoY to Rs 25,072 crore from Rs 22,842 crore in Q3 FY21
• Corporate/Wholesale banking operations: Revenue down by 9.5% YoY to Rs 17,948 crore from Rs 19,852 crore in Q3 FY21
• Retail banking operations: Revenue up by 4.6% YoY to Rs 34,848 crore from Rs 33,285 crore in Q3 FY21

What the management says

The bank said strong growth was seen in the personal retail segment, driven by home loans, Xpress credit and other loans. Corporate & SME credit also picked up during the quarter, it said.

Other things to know about State Bank of India

• SBI is the largest public sector bank in India with a market capitalization of Rs 4.73 lakh crore (as of February 7, 2022).
• The bank’s P/E ratio is at 21.12 against the industry average of 27.93 while its P/B ratio is at 1.66 against the industry average of 2.36 (as of February 7, 2022).
• SBI’s dividend yield is at 0.75% against the industry average of 0.54%m which is the highest in the public banking sector (as of February 7, 2022).

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Research Analyst: Bavadharini KS