Mumbai: State Bank of India reported a 35% decline in net profit for the quarter ending December 2023 after a one-time extraordinary provision of Rs 7,100 crore, which included Rs 5,700 crore for pensions and the rest for salaries.
The country’s largest bank reported a net profit of Rs 9,164 crore for the quarter ended December 2023, compared to Rs 14,205 crore in the same quarter last year. Higher pension provisions required after court decision State Bank of India To remove an anomaly where one section of employees received pension at the rate of 40% of the salary, while the rest received pension at the rate of 50%.
Answering the question whether the bank will raise Paytm Payments Bank Customer, President of the Bank, Dinesh KharaSaid that the bank would be willing to take over the merchants and merchant bank accounts of Paytm. “We have a subsidiary, SBI Payments, which acquires merchants while the bank can provide bank accounts to merchants,” Khara said. He said the bank is open to getting these accounts individually or through one-time migration.
The decline in net profit was despite SBI’s net interest income rising 4.6% to Rs 39,816 crore. However, due to deposit revaluation (1% = 100 bps) net interest margin declined by 35 basis points year-on-year and nine bps quarter-on-quarter to 3.34%.
Announcing the results, Khara said the benefit of the rate hike has been fully passed on to all deposit holders. He said that he expects that by the third quarter of FY 2025 the interest rate cycle will turn and interest rates will start falling. While the bank has decided to make full provisions for liabilities to its employees, Khara indicated that prospects for the third quarter were better as the bank will not have to make employee-related provisions of Rs 9,000 crore made during the third quarter. .
The country’s largest bank reported a net profit of Rs 9,164 crore for the quarter ended December 2023, compared to Rs 14,205 crore in the same quarter last year. Higher pension provisions required after court decision State Bank of India To remove an anomaly where one section of employees received pension at the rate of 40% of the salary, while the rest received pension at the rate of 50%.
Answering the question whether the bank will raise Paytm Payments Bank Customer, President of the Bank, Dinesh KharaSaid that the bank would be willing to take over the merchants and merchant bank accounts of Paytm. “We have a subsidiary, SBI Payments, which acquires merchants while the bank can provide bank accounts to merchants,” Khara said. He said the bank is open to getting these accounts individually or through one-time migration.
The decline in net profit was despite SBI’s net interest income rising 4.6% to Rs 39,816 crore. However, due to deposit revaluation (1% = 100 bps) net interest margin declined by 35 basis points year-on-year and nine bps quarter-on-quarter to 3.34%.
Announcing the results, Khara said the benefit of the rate hike has been fully passed on to all deposit holders. He said that he expects that by the third quarter of FY 2025 the interest rate cycle will turn and interest rates will start falling. While the bank has decided to make full provisions for liabilities to its employees, Khara indicated that prospects for the third quarter were better as the bank will not have to make employee-related provisions of Rs 9,000 crore made during the third quarter. .
