State Bank of India (SBI) reported a 7 per cent decline in standalone net profit at ₹5,196 crore in the third quarter ended December 31, 2020, as against ₹5,583 crore in the year ago quarter.

Though bad loan provisions came down 72 per cent year-on-year to ₹2,290 crore, the bottomline was weighed down by increase in overall provisions, including additional provisioning towards the Covid-19 related impact, and rise in employee expenses arising out of 11th bipartite wage settlement.

Net interest income (difference between interest earned and interest expended) nudged up 4 per cent to ₹28,820 crore.

Other income comprising total fee income, dividend income, trading gains, recovery from technically written-off accounts, edged up about 1.5 per cent yoy to ₹9,246 crore.

Bad loans decline

GNPAs declined to 4.77 per cent of gross advances as at December-end 2020 against 6.94 per cent as at December-end 2020.

Net NPAs declined to 1.23 per cent of net advances as at December-end 2020 against 2.65 per cent as at December-end 2020.

With proforma slippages (adjusted for the Supreme Court’s interim order), Gross and Net NPA ratio would have been 5.44 per cent and 1.81 per cent, respectively.