MUMBAI: The State Bank of India (SBI), the nation’s foremost public sector lender, has demonstrated remarkable growth in its financial performance for the July-September quarter of FY25.
The bank reported a staggering 27.92 per cent year-on-year increase in net profit, amounting to Rs18,331 crore. The notable rise is further complemented by a 50.87 per cent increase in operating profit, which reached Rs29,294 crore. Such impressive figures reflect SBI’s robust operational efficiency and strategic management.
In terms of profitability metrics, the bank’s Return on Assets (ROA) stood at 1.13 per cent, while Return on Equity (RoE) was at a commendable 21.78 per cent during the first half of FY25. The net interest income (NII) also saw a growth of 5.37 per cent compared to the previous year, highlighting the bank’s effective lending strategies.
Furthermore, the Gross Non-Performing Asset (NPA) ratio improved, reaching 2.13 per cent, while the Net NPA ratio decreased to 0.53 per cent, indicating enhanced asset quality and risk management.
SBI’s growth in credit was also noteworthy, with an overall increase of 14.93 per cent, supported by a 15.55 per cent rise in domestic advances.
SBI shares decline
The bank’s total deposits surged by 9.13 per cent, amounting to Rs51,17,284 crore. The growth was driven by a substantial increase in both domestic Current Account Savings Account (CASA) deposits, which grew by 4.24 per cent, and domestic term deposits, which increased by 12.51 per cent. The CASA ratio, a critical measure of liquidity, stood at 40.03 per cent as of September 30.
The bank also reported a year-on-year growth in loans to small and medium enterprises (SME) and retail customers, with increases of 17.36 per cent and 12.32 per cent, respectively.
Additionally, the adoption of digital banking is notable, as 61 per cent of savings bank accounts were opened through the YONO platform, reflecting a shift towards digital transactions; the share of alternate channels in total transactions rose from 97.7 per cent to 98.2 per cent year-on-year.
Despite this positive performance, the stock price of SBI experienced a 2.3 per cent decline, trading at Rs839.70 per share during intra-day sessions.
The bank also reported an improvement in its Slippage Ratio, which slightly increased to 0.51 per cent for Q2 FY25 but remains manageable at 0.68 per cent for the first half of the fiscal year. Furthermore, the Capital Adequacy Ratio (CAR) was solid at 13.76 per cent, ensuring the bank’s financial stability going forward.
