New Delhi: The State Bank of India (SBI) has announced an impressive year-on-year (YoY) net profit growth of 84.32%, reaching Rs16,891 crore for Q3FY25. This robust performance is attributed to increased operating profit and enhanced asset quality.
SBI reported an operating profit of Rs23,551 crore for the quarter, reflecting a YoY increase of 15.81%. The Net Interest Income (NII) also saw a YoY rise of 4.09%, totaling Rs41,446 crore, while the Return on Assets (ROA) improved to 1.04%, up by 42 basis points (bps) YoY. The bank's Net Interest Margin (NIM) for its domestic operations was recorded at 3.15% in Q3FY25.
In terms of credit growth, the bank experienced a significant increase, with total advances surpassing Rs40 lakh crore. Overall credit growth was reported at 13.49% YoY, with domestic advances rising by 14.06% YoY and foreign office advances increasing by 10.35% YoY.
Breaking it down by segments, SME lending grew by 18.71% YoY, while agricultural loans increased by 15.31% YoY. Corporate advances saw a rise of 14.86% YoY, and retail personal advances grew by 11.65% YoY.
On the deposits side, total deposits increased by 9.81% YoY, with the Current Account Savings Account (CASA) ratio standing at 39.20% as of December 31, 2024.
The bank has also shown improvements in asset quality, with the Gross NPA ratio declining to 2.07%, a reduction of 35 bps YoY. The Net NPA ratio improved by 11 bps YoY to 0.53%, reflecting better risk management and recovery efforts. Additionally, the Provision Coverage Ratio (PCR) rose to 74.66%, an increase of 49 bps YoY.
Furthermore, the slippage ratio for Q3FY25 improved by 19 bps YoY to 0.39%, further enhancing the bank's financial stability.
As of the conclusion of Q3FY25, the Capital Adequacy Ratio (CAR) was recorded at 13.03 percent, indicating a robust capital foundation.
The bank is actively enhancing its digital footprint, with 64 percent of new savings accounts being established through the YONO platform.
Moreover, the proportion of transactions conducted via alternative banking channels rose to 98.1 percent in 9MFY25, up from 97.7 percent in 9MFY24.
In summary, the bank's solid profitability, enhanced asset quality, and expanding digital banking capabilities underscore its resilient growth path.
Although there was a minor decline in net profit quarter-on-quarter due to increased provisions, the bank is well-equipped for continued strong performance in the upcoming quarters.
