State Bank of India (SBI) has reported a significant 35.49% fall in its third quarter (October-December) net profit for the financial year 2023-24. The net profit plummeted to ₹9,164 crore as compared to ₹14,205 crore in the corresponding period the previous year. The decline has been attributed to a one-time provisioning of ₹7,100 crore, SBI Chairman Dinesh Khara announced at a press conference. This provision was made towards wage hikes and pension liabilities.
Khara highlighted that out of the ₹7,100 crore, the bank allocated ₹5,400 crore to address the anomaly in pension that has been persistent since 2002, and another ₹1,700 crore was set aside for dearness relief neutralization for pre-2002 retirees. Despite this slump in profit, the chairman emphasized that the bank’s asset quality remained robust.
The financial results of SBI’s third quarter indicate the challenges faced by the banking sector and the impact of regulatory and economic changes. Additionally, the provision made for pension liabilities underscores the bank’s commitment to addressing long-standing financial obligations, ensuring the wellbeing of its employees, and maintaining a healthy balance sheet.
