SBI posts net profit of Rs 17,035 Cr with operating profit up 4.55% YoY in Q1FY25

New Delhi: State Bank of India (SBI) announced financial results for the first quarter of fiscal year 2024-25 (Q1FY25), with a net profit of Rs 17,035 crores for Q1FY25, registering a year-on-year (YoY) growth of 0.89 per cent.

Operating profit for the quarter grew more significantly, increasing by 4.55 per cent year-on-year to Rs 26,449 crores. The bank’s return on assets (ROA) and return on equity (ROE) stood at 1.10 per cent and 20.98 per cent, respectively, underlining the bank’s efficient management and profitability of operations.

The bank’s net interest income (NII) for Q1FY25 rose by 5.71 per cent year-on-year, reflecting improvement in net interest earnings. The bank’s total net interest margin (NIM) stood at 3.22 per cent and domestic net interest margin was marginally higher at 3.35 per cent. These figures indicate high interest income relative to the bank’s interest-earning assets, demonstrating SBI’s effective interest rate management.

SBI credit growth remained solid at 15.39 per cent year-on-year. Domestic advances, a key component of this growth, grew by 15.55 per cent year-on-year, driven mainly by advances to small and medium enterprises (SMEs), which grew by 19.87 per cent year-on-year.

Agricultural Advances also showed a healthy growth of 17.06 percent year-on-year. Moreover, Retail Personal Advances and Corporate loans registered year-on-year growth of 13.60 percent and 15.92 percent, respectively. This positive trend was also contributed by the bank’s overseas offices, whose advances grew by 14.41 percent year-on-year.

Total bank deposits recorded a year-on-year growth of 8.18 per cent, with CASA deposits increasing by 2.59 per cent year-on-year, resulting in a CASA ratio of 40.70 per cent as of June 30, 2024. This indicates a stable and growing deposit base, which is essential for the bank’s funding and liquidity.

The bank’s asset quality showed significant improvement with the Gross Non-Performing Assets (NPA) ratio declining by 55 basis points (bps) year-on-year to 2.21 per cent. The Net NPA ratio also improved, declining by 14 bps year-on-year to 0.57 per cent. The Provision Coverage Ratio (PCR), including advances on collection accounts (AUCA), stood at an impressive 91.76 per cent and the Overall PCR stood at 74.41 per cent.

Further, slippage rate for Q1FY25 improved by 10 bps YoY to 0.84 per cent and credit cost for the quarter was reduced to 0.48 per cent. These improvements reflect SBI’s stringent risk management practices and effective recovery mechanisms.

SBI’s Capital Adequacy Ratio (CAR) at the end of the first quarter of fiscal year 2025 stood at 13.86 per cent, indicating a strong capital position and the bank’s preparedness to meet regulatory requirements while supporting future growth.