SBI net profit surges 68% to record high — beats estimates

State Bank of India (SBI) on Friday posted 68.5 percent rise in net profit at Rs 14,205 crore in third quarter of FY23, as against Rs 8,431.9 crore in the same quarter of FY22. This was ahead of CNBC-TV18's estimate of Rs 13,587,9 crore. This reported profit record high, boosted by better interest income and a drop in bad loan provisions.

Strong economic activity post the pandemic and festive-season spending has boosted credit-seeking in the country, feeding loan growth at SBI.

The net interest income (NII) was reported at Rs 38,068.6 crore versus Rs 30,687.4 crore year-on-year. CNBC-TV18's poll has estimate NII at Rs 37,059 crore.

The public sector lender's total income grew to Rs 98,084 crore from Rs 78,351 crore in the year-ago period, while the operating expenses were up at Rs 24,317 crore from Rs 20,839 crore, as per an exchange filing. The provisions for non-performing assets nearly halved to Rs 1,586 crore for the reporting quarter.

The gross non-performing assets ratio reduced to 3.14 percent as against 3.52 percent three months ago and 4.50 per cent in the year-ago period.

Meanwhile, SBI said its overall exposure to the Adani Group is at 0.88 percent of the book or around Rs 27,000 crore. SBI chairman Dinesh Khara said the bank does not envisage the embattled ports-to-mining group facing any challenge to service its debt obligations and stressed that SBI has not given any loans against shares to the group.

Lending to Adani Group projects is with regard to ones having tangible assets and adequate cash flows, Khara said, adding that the group has an excellent repayment record. He also said there has not been any refinance request, which has come from the Adani group.

The SBI scrip gained 3.12 percent to close at Rs 544.45 a piece on the BSE, as against a 1.52 percent jump on the benchmark.