State Bank of India (SBI) has reported an impressive 84% year-on-year growth in net profit, reaching ₹16,891 crore for Q3FY25, surpassing analyst expectations. The bank’s net interest income (NII) grew by 4% to ₹41,446 crore, driven by a 14.06% rise in domestic loans. Employee expenses fell by 17% to ₹16,074 crore, reflecting cost optimization.
SBI’s gross advances increased by 13.49% to ₹40.68 lakh crore, with domestic corporate advances rising to ₹11.76 lakh crore. Domestic retail advances also grew 11.65%, totaling ₹14.47 lakh crore. Meanwhile, deposits increased by 9.81% to ₹52.3 lakh crore, although the CASA ratio dipped to 39.2%.
SBI’s asset quality remained stable, with the gross NPA ratio improving slightly to 2.07%, and net NPA holding steady at 0.53%. The Provision Coverage Ratio (PCR) improved to 91.74%. On a sequential basis, SBI’s NIM for Q3FY25 stood at 3.01%, down from 3.14% in Q2FY25.
The bank continues to see strong growth in unsecured personal loans, with double-digit growth anticipated in this segment. SBI’s MFI portfolio is small but shows some stress. Despite these strong results, shares of SBI dipped by 1.8% following the earnings announcement.
