BENGALURU: State Bank of India, the country’s largest lender by assets, reported a 7% fall in third-quarter profit on Thursday, hurt by higher provisions and a dip in income from its corporate banking operations.
The bank’s earnings, though tepid compared to last year due to significant loan recoveries recognized in the year-earlier quarter, highlight a recovery seen in retail lending as the economy returns to normalcy after being hit by the Covid-19 pandemic, even as concerns around bad loans linger.
The Mumbai-based company’s shares, which have risen 22% this year up to last close, were up 2.3%.
Net profit fell to Rs 5,196 crore ($712.73 million) for the three months ended December 31, from a record profit of Rs 5,583 crore reported a year earlier on the back of resolution of some large bad loan accounts.
Analysts had expected State Bank of India (SBI) to report a profit of Rs 4,510 crore, according to Refinitiv IBES data.
Income from the company’s corporate banking operations fell nearly 19%, while overall provisions rose to Rs 10,342 crore from Rs 7,253 crore.