SBI reports 7 pc fall in quarterly profit

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By Ashish Mitra --
Thursday, 04 Feb, 2021

Hurt by higher provisions and a dip in income from its corporate banking operations, State Bank of India has reported a fall of 7 per cent in its third-quarter profit.

The bank's earnings, though tepid compared to last year due to significant loan recoveries recognised in the year-earlier quarter highlight a recovery seen in retail lending as the economy returns to normalcy after being hit by the COVID-19 pandemic, even as concerns around bad loans linger.

The bank’s net profit fell to 51.96 billion rupees ($712.73 million) for the three months ended Dec. 31 from a record profit of 55.83 billion rupees reported a year earlier on the back of resolution of some large bad loan accounts.

Analysts had expected State Bank of India (SBI) would report a profit of 45.1 billion rupees, according to Refinitiv IBES data.

Income from the bank's corporate banking operations fell nearly 19 per cent while overall provisions rose to 103.42 billion rupees from 72.53 billion rupees.

SBI reports 7 pc fall in quarterly profit. Hurt by higher provisions and a dip in income from its corporate banking operations, State Bank of India has reported a fall of 7 per cent in its third-quarter profit.

The bank's earnings, though tepid compared to last year due to significant loan recoveries recognised in the year-earlier quarter highlight a recovery seen in retail lending as the economy returns to normalcy after being hit by the COVID-19 pandemic, even as concerns around bad loans linger.

The bank’s net profit fell to 51.96 billion rupees ($712.73 million) for the three months ended Dec. 31 from a record profit of 55.83 billion rupees reported a year earlier on the back of resolution of some large bad loan accounts.

Analysts had expected State Bank of India (SBI) would report a profit of 45.1 billion rupees, according to Refinitiv IBES data.

Income from the bank's corporate banking operations fell nearly 19 per cent while overall provisions rose to 103.42 billion rupees from 72.53 billion rupees.