State Bank of India 3Q Profit Fell on Pension Charges

By Kimberley Kao

State Bank of India's fiscal third quarter profit fell 29% compared with the same period a year earlier as provisions related to pensions offset higher revenue.

The Mumbai-based lender posted consolidated net profit of 110.64 billion rupees ($1.33 billion) for the quarter ended Dec. 31, while total income rose 20% on year to INR1.531 trillion, it said Saturday.

On a standalone basis, net interest income rose 4.6% on year to INR398.16 billion, while noninterest income fell 0.1% to INR114.59 billion. Operating profit fell 19% on year, hurt by a 27% rise in operating expenses.

State Bank of India booked an INR71.00 billion charge for provisions related to a one-time increase in pension liabilities, it said.

The bank reiterated its stance from a quarter earlier that India's macroeconomic indicators appear buoyant, citing outlook for strong gross domestic product growth. It added that "deposit growth has rebounded but sustained credit growth momentum has increased wedge between deposits and credit growth."

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

February 04, 2024 23:29 ET (04:29 GMT)

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