SBI Records 84% Surge in December Quarter Net Profit

State Bank of India posted an 84% increase in net profit for the December quarter, reaching Rs 16,891 crore, aided by a lower base effect. Despite a 14% growth in advances, core net interest income grew 4% year-on-year, influenced by a shift towards high-yielding fixed deposits.

The State Bank of India (SBI) witnessed an impressive 84% rise in December quarter net profit, totaling Rs 16,891 crore. The profit spike was assisted by a lower base from the previous year, which saw a one-time provision hampering results.

The bank's core net interest income noted a 4% annual growth to Rs 41,446 crore, even with a 14% growth in advances. The performance was impacted by a narrowing of 0.19% in the net interest margin, now at 3.15%.

SBI Chairman C S Setty cited customer shifts towards high-yielding fixed deposits as a factor affecting this narrowing. Despite challenges in increasing CASA, the bank plans to bolster yields through unsecured personal loans and enhanced corporate customer margins.

(With inputs from agencies.)