SBI Q3 Net Rises 134% To Rs 2,610 Crore, Beats Estimates

State Bank of India, India's biggest lender according to assets, reported better than estimated net profit of Rs 2,610 crore for the October to December quarter on lower provisions and a surge in other incomes on account of treasury gains. Analysts polled by NDTV Profit had estimated SBI's net profit at Rs 2,510 crore. SBI had reported a net profit of Rs 1,115 crore in the corresponding quarter of last fiscal. SBI made a provision of Rs 7,245 crore for stressed loans in Q3, lower than the Rs 7,645 crore provision it made last fiscal. Meanwhile, SBI's net profit also got a boost from other incomes, which surged nearly 60 per cent to Rs 9,662 crore in Q3.

SBI's NII or net interest income, which is the excess of interest earned on advances over interest paid on deposits, rose 8 per cent annually to Rs 14,751 crore compared to Rs 13,697 crore last year. Analysts polled by NDTV Profit had estimated its NII at Rs 14,513 crore. 

SBI, which accounts for more than a fifth of India's banking assets, saw its gross bad loans as a percentage of total loans rising slightly to 7.23 per cent at the end of December, from 7.14 per cent at end-September.

Terming SBI's results as "decent", Gaurang Shah of Geojit BNP Paribas said he remains positive on SBI shares.  Management commentary on merger of associate banks will be keenly watched, he added. SBI shares ended 0.18 per cent higher at Rs 276.35 apiece compared to 0.31 per cent gain in the Nifty Bank index.