State Bank of India Shares Q3 Results

State Bank of India Shares Q3 Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

For the third quarter ended Dec-21, State Bank of India reported strong profit growth helped by sharply lower provisioning for loan losses in the quarter. Revenue growth was impressive despite a high base. During the quarter, State Bank of India saw sharp expansion in CASA deposits, in its return on equity (ROE) as well as an improvement in the net interest margins (NIM), showing enhanced earnings quality in Q3.


Here is a Gist of SBI Financial Numbers


Rs in Crore






Total Income

₹ 1,04,528

₹ 97,182


₹ 1,01,143


Operating Profit

₹ 20,592

₹ 19,417


₹ 20,445


Net Profit

₹ 9,555

₹ 6,258


₹ 8,890


Diluted EPS

₹ 10.71

₹ 7.01


₹ 9.96


Operating Margins






Net Margins






Gross NPA Ratio






Net NPA Ratio






Return on Assets (Ann)






Capital Adequacy







Let us start with the top line story of SBI. Revenues for the Dec-21 quarter were higher by 7.56% YoY at Rs.104,528 crore in the third quarter. If you look at the granular breakup of the top line revenues, SBI saw modest revenue growth in treasury operations as also in retail banking. However, SBI also witnessed a modest fall in revenues in the wholesale banking vertical. Group insurance revenues for the quarter were nearly 27% higher on YoY basis. 

SBI did well on most of the other revenue parameters. Revenues of SBI were up 3.55% on a sequential basis compared to Sep-21 quarter. On YoY basis, the net interest income or NII improved by 6.48% to Rs.30,687 crore. The ratio of CASA deposits to total at the close of the Dec-21 quarter, stood at 45.74%, among the most impressive among PSU banks. While domestic advances grew 6.47% in the quarter, retail advances improved by 14.6%.

Let us now turn to the operating performance of SBI. For the Dec-21 quarter, operating profits increased by 6.05% at Rs.20,592 crore. This was supported by the all-important Net interest margins or NIMs improving by 6 basis points on a YoY basis at 3.40%. Although this is still lower than the private sector peer group average, it is much better in the PSU banking space. This was largely achieved on lower cost of credit reported in the quarter.

In fact, Credit cost for the Dec-21 quarter stood at just 0.49% for SBI while the cost to income ratio also trended lower to 52.94%. The return on equity or ROE of SBI improved by 452 basis points in the quarter to 14.01%. Provision coverage ratio or PCR for SBI stood at 88.32% in the quarter. The slippage ratio was just about 0.37%.  Operating margin or OPM was marginally lower, falling YoY from 19.98% to 19.70% in the Dec-21 quarter.

PAT for the Dec-21 quarter was up 52.7% at Rs.9,555 crore. This was triggered by a 31% fall in provisions for loan losses at Rs.7,442 crore. Gross NPAs were slightly lower in the quarter at 4.50% for the bank and well under control after the pressures of the last few years. Capital adequacy ratio needs improvement at a tepid 13.23%. PAT margins improved from 6.44% to 9.14% on a YoY basis. Net margins were higher on a sequential basis by 35 bps.

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