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TMI BlogLower base helps SBI Q3 profit zoom 84 pc to Rs 16,891 cr; NIMs narrowX X X X Extracts X X X X X X X X Extracts X X X X ..... Lower base helps SBI Q3 profit zoom 84 pc to Rs 16,891 cr; NIMs narrow X X X X Extracts X X X X X X X X Extracts X X X X ..... 100-crore one-time provision towards pension liabilities. It had reported a net profit of Rs 18,331 crore in the preceding September quarter. The core net interest income grew 4 per cent year-on-year to Rs 41,446 crore, despite a 14 per cent growth in advances but was impacted because of a 0.19 per cent narrowing in the net interest margin at 3.15 per cent. The bank's chairman C S Setty attrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted the NIM impact to a shift in customer preferences, wherein money is getting parked in the high-yielding fixed deposits rather than the low-cost current and savings accounts. He said the cost of deposits has stabilised or peaked, and added that the NIM number will not fall below the 3 per cent mark. He said increasing the share of CASA, which fell to 39.2 per cent during the quarter, seems d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifficult but contested against the low levels in the number being called as the new normal. "There is a shift in the saving behaviour which is irreversible in my view. There will be some movement from investments to savings, but broadly I think the culture of investments and looking towards generating some good returns on our savings is here to stay. "Also, the element of government managing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts own cash flows is impacting the current account movement. I don't want to call it new normal, but I think higher Casa seems to be difficult," he said. Quizzed about the possibility of a rate cut by the Reserve Bank of India (RBI), Setty said such a move can have limited impacted on SBI's position as only 28 per cent of the bank's advances are linked to external benchmark while the rest are ei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther fixed or marginal cost of lending-based rates (MCLR). The bank will be working on widening its yield on advances by increasing the growth in the unsecured personal loans and also trying to extract more margins from the corporate customers, he said. Growth in unsecured personal loans slipped to just 2 per cent, and the bank is aiming to take it into double digits, Setty said, making it cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar that it will not be upwards of 30 per cent as seen in recent years. Retail personal loan growth, which includes areas such as homes, auto, and unsecured lending, at over 11 per cent came lower than the overall 14 per cent credit growth during the quarter. This is a multi-quarter low for the bank that had been relying on retail to grow the loanbook for many years. On the asset quality fron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, Setty said the bank does not have much to worry and the corporate loans are also not showing any concerning movements. The fresh slippages came down to Rs 3,823 crore as against Rs 4,960 crore in the year-ago period, and the gross non-performing assets ratio further improved to 2.07 per cent from 2.42 per cent in year-ago period. On corporate loans, the bank's overall pipeline and sanctione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d but unutilised limits stands at Rs 4.8 lakh crore, its Managing Director Ashwini Tewari said. The overall capital adequacy stood at 13.03 per cent as on December excluding the plough-back of profits, with the core tier-I at 9.52 per cent, and Setty said the bank has sufficient capital to take care of the country's credit requirements. The bank is waiting to attain a critical mass before it t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes a call on listing its general insurance and asset management arms, he said, choosing not to disclose the benchmarks.
The bank's consolidated net profit came at Rs 18,853 crore, as against Rs 11,064 crore in the year-ago period.
The SBI scrip closed 1.79 per cent down at Rs 752.35 a piece on the BSE, as against a 0.27 per cent correction on the benchmark. PTI AA TRB X X X X Extracts X X X X X X X X Extracts X X X X ..... e - PIB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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