Net interest income, or core income, for the lender rose 4.5% year-on-year to Rs 39,815 crore.

State Bank of India’s third quarter profit fell 35.4%, missing analysts’ estimates.

The public sector lender’s standalone net profit stood at Rs 9,163.96 crore for the quarter-ended December, as compared with Rs 14,205 crore over the same period last year.

State Bank of India Q3 Highlights (Standalone)

• Net profit: Rs 9,163.96 crore vs Rs 14,205 crore, down 35.4% (YoY).
• Net interest income: Rs 39,815.73 crore vs Rs 38,069 crore, up 4.5% (YoY).
• Gross NPA: 2.42% vs 2.55% (QoQ).
• Net NPA: 0.64% vs 0.64% (QoQ).

Dinesh Kumar Khara, chairman of SBI, told reporters in a post-results media briefing that the lender would maintain NIM at current levels. Asset quality improved with gross non-performing asset ratio falling 13 basis points to 2.42% quarter-on-quarter. Net NPA ratio remained flat sequentially at 0.64%. The bank reported gross slippages in the December quarter at Rs 5,046 crore.

The bank’s chairman said that one SME account has led to a rise in slippages sequentially. “We will look at restructuring that SME account… slippages should not be a matter of concern,” he said. Provisions other than tax and contingencies (net of write-back) for the quarter fell 88% year-on-year to Rs 687.85 crore. Those for NPA rose 10.7% to Rs 1,756.95 crore on a yearly basis.