The bank has made an additional provision of INR62.47bn ($856m) in December 2020, towards the possible impact of Covid-19 pandemic
State Bank of India (SBI) has reported a net profit of INR51.96bn ($712.59m) for the third quarter (Q3) of the financial year (FY) 2021, a 7% decrease compared to INR 55.83bn ($765.66m) for Q3 FY20.
The Indian public sector bank reported an operating profit of INR173.33bn ($2.37bn) for Q3 FY21, a 4.8% decrease compared to INR182.23bn ($2.49bn) for the same quarter previous year.
The bank reported a net profit of INR139.6bn ($1.91bn) for nine months of FY21, a 27.99% increase compared to INR109.07bn ($1.49bn) for the nine months of FY20.
SBI attributed the decline in Q3 FY21 profits to provisions related to Covid-19, where it has made an additional provision of INR62.47bn ($856m) in December 2020, towards the possible impact of Covid-19 pandemic.
SBI, in its statement, said: “Excluding the one-off interest income and other income during Q3FY20, the YoY growth in net profit and operating profit for Q3FY21 would be 133.78% and 26.23% respectively.”
The Indian bank reported a net interest income of INR288.20bn ($3.95bn) for Q3 FY21, a 3.75% increase compared to INR277.79bn ($3.80bn) for Q3 FY20.
SBI reported total deposits of INR35.35 trillion ($484.79bn) for Q3 FY21, which increased by 13.6% compared to INR31.11 trillion ($426.65bn) for the same period in the previous year.
Among the total deposits, current account deposit increased by 11.33% and saving bank deposits by 15.99% for Q4 FY21, compared to Q3 FY20.
The bank reported loan loss provisions of INR22.90bn ($314m) for Q3 FY21, which decreased by 72.04% compared to INR 81.93bn ($1.12bn) for the same quarter in FY20.