SBI Q3 Results: Shares settle in red despite 84% jump in profit; check five key takeaways

Following earnings announcement, SBI shares ended 1.58% lower at ₹753.95 apiece on the NSE.

Net Interest Income

The net interest income or NII of SBI in Q3 rose over 4% to ₹41,445.5 crore as compared to ₹31,815.7 crore in the quarter ended December 2023. On a sequential basis, the bank witnessed a marginal drop in NII from ₹41, 620 in the preceding three months.

An NII of a bank is the difference between the interest income it gets from activities of lending and the interest it pays out to the customers for deposits.

Net Interest Margin

The net interest margin, which gives an idea about the profitability that the bank has from its lending activities, saw a 12 basis points downtick during the quarter under review as compared to the third quarter of the last financial year. SBI clocked a NIM of 3.15% in Q3, marginally lower from 3.34% in the corresponding quarter of the previous financial year, according to the stock exchange filing.

Asset Quality

The gross Non-Performing Assets (NPA) of India’s largest lender saw an improvement during Q3. The bank’s gross NPA improved to 2.07% in the third quarter of the ongoing fiscal from 2.42% in Q3 of FY24. The net NPA or bad loans of SBI witnessed also improved from 0.64% to 0.53% this quarter. On a sequential basis, it remained unchanged. The bank's net NPA in absolute terms in the quarter ending December 31, 2024, stood at ₹21,378 crore in comparison to ₹22,408 crore recorded in the year-ago period.

Capital Adequacy Ratio

Capital Adequacy Ratio of the public sector lender, as per its press release, as of December 31, 2024, was recorded at 13.03%, as compared to 13.05% in the year-ago period, marking a 2 basis points drop. Capital Adequacy Ratio indicates the financial stability of the bank,

Deposits and CASA Ratio

Deposits of the bank in Q3 increased 9.81% YoY, as per the filing. SBI recorded a deposit of ₹52,29,384 crore for the quarter ended December 2024, in comparison to ₹47,62,221 crore in the corresponding quarter of the previous financial year. The CASA ratio, or current and savings account ratio, of the public lender, declined to 39.20% in this quarter against 41.18% in the same quarter a year ago.

SBI’s performance versus other banks