On February 5, shares of State Bank of India (SBI) witnessed a decline as the public sector bank’s third-quarter earnings failed to meet Street estimates. The country’s largest lender reported a 35% year-on-year decrease in net profit, totaling Rs 9,163 crore, primarily influenced by a substantial Rs 7,100 crore pension liabilities.
Analysts note that despite this one-time impact, SBI’s overall earnings remained robust, attributed to lower credit costs, even in the face of a weak core operating performance. The net interest income (NII), representing the difference between interest earned and paid, fell slightly short of expectations at Rs 39,815 crore, compared to estimated Rs 40,304 crore. The bank reported an interest margin (NIM) of 3.22 percent, as disclosed on February 2.
As of 9:27 am, SBI shares were trading 0.87% lower at ₹644.00, reflecting the market’s immediate response to the Q3 results. The dip in share value underscores the impact of high pension liabilities on the bank’s financial performance and the need for strategic adjustments to address such challenges in the future.
