SBI's Profit Surge: Navigating Interest Shifts and Loan Growth

State Bank of India recorded an 84% increase in Q3 net profit to Rs 16,891 crore, driven by a lower base year. Despite a 14% growth in advances, net interest income rose only 4% due to a narrowing margin. SBI aims to boost unsecured loans and manage deposit costs.

The State Bank of India reported a significant 84% rise in its December quarter net profit, reaching Rs 16,891 crore. This was primarily due to a lower base in the previous period.

During the year-ago quarter, India's largest lender faced a net profit of Rs 9,164 crore, impacted by a Rs 7,100-crore one-time provision towards pension liabilities. For the September quarter, SBI stated a higher profit of Rs 18,331 crore.

The bank's chairman, C S Setty, explained the net interest margin contraction as a shift in customer preferences towards high-yielding fixed deposits over low-cost current and savings accounts. SBI's focus is now on widening its unsecured personal loan portfolio and managing deposit costs.

(With inputs from agencies.)