State Bank of India (SBI), the country’s largest public sector bank, has announced its Q3 FY2024 financial results, showcasing steady growth in total income and improved asset quality. The bank reported a net profit of ₹18,853 crore, reflecting a significant year-on-year increase, though slightly lower than the previous quarter. The earnings per share (EPS) stood at ₹21.12, while the gross NPA ratio improved to 2.07%. With strategic investment shifts, digital banking expansion, and a strong capital adequacy ratio, SBI remains focused on sustainable growth. Here’s a detailed breakdown of the financial performance, key observations, and future outlook for investors.
Below is a summary of the State Bank of India’s (SBI) consolidated financial results, presented in a tabular format for easy comparison with the previous quarter and the same quarter last year. The report also includes future growth plans and key investor insights.
Financial Performance Overview
| Financial Parameter | Q3 FY2024 (₹ crore) | Q2 FY2024 (₹ crore) | Q3 FY2023 (₹ crore) |
|---|---|---|---|
| Total Income | 1,67,853.57 | 1,63,802.38 | 1,53,071.64 |
| Net Profit | 18,853.16 | 19,782.76 | 11,064.14 |
| Earnings Per Share (EPS) | 21.12 | 22.17 | 12.40 |
| Gross NPA | 84,360.38 | 83,369.23 | 86,748.81 |
| % of Gross NPAs | 2.07% | 2.13% | 2.42% |
| Net NPA | 21,377.64 | 20,294.32 | 22,408.38 |
| % of Net NPAs | 0.53% | 0.53% | 0.64% |
Key Observations:
- Total Income: Increased from ₹1,53,071.64 crore (Q3 2023) to ₹1,67,853.57 crore (Q3 2024). Also higher than the previous quarter (₹1,63,802.38 crore).
- Net Profit: Grew significantly year-on-year (₹11,064.14 crore in Q3 2023 to ₹18,853.16 crore in Q3 2024) but slightly declined compared to Q2 2024 (₹19,782.76 crore).
- EPS: Rose from ₹12.40 (Q3 2023) to ₹21.12 (Q3 2024), though slightly lower than ₹22.17 in the previous quarter.
- Asset Quality:
- Gross NPAs declined from ₹86,748.81 crore to ₹84,360.38 crore.
- Gross NPA ratio improved from 2.42% to 2.07%.
- Net NPAs reduced from ₹22,408.38 crore to ₹21,377.64 crore.
- Net NPA ratio improved from 0.64% to 0.53%.
Future Growth Plans
- SBI will continue to follow its existing accounting policies, with adjustments in line with RBI’s new Master Direction effective from April 1, 2024.
Key Points for Investors
- Government Holding: The Government of India holds 56.92% of SBI’s shares.
- Capital Adequacy (Basel III): 13.03%
- CET 1 Ratio: 9.52%
- Additional Tier 1 Ratio: 1.33%
- Digital Banking Revenue: ₹1,338.72 crore for Q3 FY2024.
- Investment Framework Changes:
- Shifted to Weighted Average Carrying Cost (WACC) from FIFO for transactions.
- Switched to Straight Line Method from Constant Yield Method for amortizing floating rate bonds.
- Stake Changes:
- Minor reductions in SBI’s stake in SBI Cards, SBI Life Insurance, SBI General Insurance, and SBI Funds Management.
- Yes Bank stake reduced from 26.13% to 23.98%.
- Disinvestments:
- SBI sold 2% stake in The Clearing Corporation of India Limited (CCIL).
- New Subsidiary:
- SBI Funds Management Limited set up SBI Funds International (IFSC) Ltd. in GIFT City, Gandhinagar.
- Provision Coverage Ratio (PCR):
- 74.66% (standard PCR)
- 91.74% (PCR with Advance Under Collection Account – AUCA)
- Unhedged Foreign Currency Exposure:
- Provision of ₹3,323.54 crore as of December 31, 2024.
- Insolvency & Bankruptcy Code (IBC) Provisions:
- SBI holds ₹33,779.57 crore (100% provision) for accounts under IBC.
