The State Bank of India (SBI), the largest lender in India, reported a substantial 35.5% year-on-year decline in standalone net profit at Rs 9,163.96 crore for the October-December 2023 quarter. This compares to a net profit of Rs 14,205.34 crore in the same period last year.According to the bank, increased pension liabilities of Rs 7,100 crore significantly reduced profits for the recently concluded quarter.Total income, however, rose to Rs 118,192 crore from Rs 98,083 crore a year ago. Net interest income (NII) - the difference between interest earned and interest expended - increased 4.5% year-on-year to Rs 39,815.73 crore, compared to Rs 38,068.8 crore in the same quarter last fiscal.SBI Chairman Dinesh Khara explained, We absorbed the additional liability of Rs 7100 crore due to anomalies in pension calculations dating back to 2002. There was a set of employees entitled to 40% pension and another set entitled to 50% pension. The matter was pending in court but a settlement is imminent after approvals from the government and RBI.Although formal notification is still awaited, we provided Rs 5,400 crore for the increased pension of all employees considering the clear visibility. We also provided Rs 1,700 crore for dearness relief neutralization of pre-2002 retirees, Khara added.On credit growth, Khara noted, We see healthy and broad-based trends which should continue going forward.Gross non-performing assets (NPA) ratio declined to 2.42% (Rs 86,748 crore) as of December-end, compared to 3.14% (Rs 98,346 crore) last year. Return on assets and return on equity for the April-December period were 0.94% and 19.47% respectively.On current accounts, we have grown by refocusing on the trade and commerce sector over the last 6 months. This segment has seen good growth, Khara added.SBI shares closed 0.39% higher at Rs 650.40 on Friday on the Bombay Stock Exchange.
