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Key highlights of the quarter:
* SBI reported 22.4% YoY growth in net interest income (NII) and non-interest income grew by 13.3% YoY in Q3FY20.
* Overall net interest margin (NIM) expanded by 51 bps YoY to 3.27% while domestic NIM grew by 62 bps YoY to 3.59% which was partially off set by 18 bps YoY fall in foreign NIM.
* Pre-provisioning profits (PPOP) grew by 44.4% YoY, due to expansion in margins and higher treasury gains.
* PAT for the quarter grew by 41.3% YoY due to better efficiency and lower provisioning.
* Deposits growth stood at 9.9% YoY and 2.6% QoQ for the quarter, with Current account and Savings account (CASA) deposits (43.1% of overall deposits) growing at ~8% YoY and term deposit growing at ~11% YoY, while the Advances grew by 7.4% YoY mainly driven by retail loan growth of ~18% YoY.
* Absolute gross non-performing assets (NPA) fell by 15% YoY, while net NPA fell by 28% YoY.
* While GNPA and NNPA ratio contracted by 177 bps YoY and 130 bps YoY to 6.94% and 2.65%, respectively, and sequentially both the ratios fell marginally by 25 bps and 14 bps, respectively.
View: SBI is witnessing steady growth in deposit, especially in CASA despite having lower interest rate compared to peer.