State Bank of India (SBI) posted its Q3 earnings. The bank reported its highest quarterly net profit during the October-December period with a 62 percent jump on a year-on-year (YoY) basis at Rs 8,432 crore. SBI’s net interest income (NII) for Q3FY22 increased by 6.48 percent YoY to Rs 30,687.2 crore against Rs 28,819.9 crore in the corresponding quarter last year.

The gross NPA ratio of the largest public sector bank in the December 2021 quarter stood at 4.50 percent against 4.90 percent in the last quarter. The net NPA ratio was recorded at 1.34 percent versus 1.52 percent in the September 2021 quarter.

In an interview with CNBC-TV18, Dinesh Kumar Khara, Chairman, SBI, shed light on the bank’s Q3 earnings as well as the outlook.

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Going ahead, he expects credit growth to pick up. According to him, the trajectory of the interest rates only confirm that credit growth will come back.

On credit cost, he said that the bank will be maintaining it at current levels and will even work on reducing it in due course.

“Our effort is to keep it at the levels where we are today or maybe to reduce it in the due course. But as of now, we are exposed to various uncertainties but nevertheless we will keep it around the levels where we are,” he said.

On retail loans, he said that the major component is coming from mortgage loans and excess credit.

“The major component for retail loan is coming from the mortgage loans and excess credit. I expect that the growth should be almost similar if not better going forward,” he said.

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(Edited by : Dipikka Ghosh)

First Published:Feb 7, 2022 11:23 AM IST