State Bank of India shatters records: Skyrockets to Rs 40,378cr profit in 9MFY24

State Bank of India (SBI), India’s premier banking institution, has unveiled its financial results for the third quarter of the fiscal year 2024, marking a significant milestone in its operational and financial trajectory.

The bank’s financial performance has shown remarkable growth, with net profit surging by 20.40% YoY, alongside notable advancements in asset quality and capital adequacy, reinforcing its leadership position in the banking sector.

State Bank of India‘s Q3FY24 has been nothing short of spectacular, with a net profit of ₹9,164 crores, even after accounting for a one-time exceptional item of ₹7,100 crores. The operating profit stood at a robust ₹20,336 crores, highlighting the bank’s operational efficiency and strategic focus on profitability. The bank’s Return on Assets (ROA) and Return on Equity (ROE) for 9MFY24 have been impressive, standing at 0.94% and 19.47% respectively, showcasing the bank’s ability to generate significant earnings from its asset base and equity.

State Bank of India Announces Stellar Q3FY24 Results: A Leap Towards Robust Profitability and Enhanced Asset Quality

The bank’s balance sheet reflects a strong credit growth at 14.38% YoY, with domestic advances growing by 14.47% YoY, driven by substantial growth in corporate and SME advances. The bank’s commitment to expanding its lending portfolio is evident from the growth in domestic retail personal advances and corporate loans, indicating a robust demand across sectors.

Asset quality has seen a commendable improvement, with the Gross NPA ratio improving by 72 bps YoY and the Net NPA ratio improving by 13 bps YoY. The bank’s Provision Coverage Ratio (PCR) stands strong, showcasing SBI’s prudent risk management and provisioning policies.

Capital adequacy remains a cornerstone of SBI’s financial stability, with the Capital Adequacy Ratio (CAR) at 13.05% as of the end of Q3FY24. This solid capital base positions SBI well to support future growth and withstand any unforeseen economic challenges.

The bank’s focus on leveraging alternate channels for transactions is also noteworthy, with a significant increase in the share of alternate channels in total transactions, highlighting SBI’s emphasis on digital banking and customer convenience.

In conclusion, State Bank of India’s Q3FY24 results paint a picture of a banking giant that is not only growing at an impressive pace but is also strategically positioning itself for sustainable long-term growth. With a focus on profitability, asset quality, and capital adequacy, SBI is poised to continue its dominance in the Indian banking sector, driving innovation and excellence.