State Bank of India Ltd (SBI) on February 6 reported 84% increase in net profit at Rs 16,891 crore for the quarter ended December 31, 2024, thus beating estimates. The PSU lender reported net profit of 9,164 crore in the year-ago period.
The bank's net interest income increased 4% to Rs 41,446 crore from Rs 39,816 crore in the year-ago period. The bank's employee expenses dropped 17% to Rs 16,074 crore. SBI's domestic loans grew 14.06% year-on-year.
Whole Bank and Domestic net interest margins (NIM) for 9MFY25 stand at 3.12 percent and 3.25 percent, respectively, according to the press release. Whole Bank and Domestic NIM for Q3FY25 stand at 3.01 percent and 3.15 percent, respectively.
According to Moneycontrol poll of 6 brokerages, SBI was expected to report a 64 percent year-on-year rise in net profit to Rs 15,075 crore in Q3FY25. NII was expected to see a 6% rise at Rs 42,050 crore,.
At 2:15 pm on February 6, SBI shares were trading 1.7% lower at Rs 753 apiece.
SBI had registered a one-time hit of Rs 7,100 crore to its profit a year ago, as it set aside more provisions for wage revisions and pension costs.
SBI's Q3FY25 operating profit was lower by 20% on a sequential basis, provisions were higher at Rs 911 crore compared to a year ago but lower compared to a quarter ago.
Asset quality
Gross NPA ratio of the lender improved to 2.07 percent as on December 31, 2024, as against 2.13 percent as on September 30, 2024..
On a sequential basis, net NPA ratio remained unchanged at 0.53 percent as on December 31, 2024.
PCR (incl. AUCA) improved by 25 basis points (bps) on-year and stands at 91.74 percent. Provision Coverage Ratio (PCR) at 74.66 percent improved by 49 bps on-year.
Slippage Ratio for 9MFY25 improved by 8 bps on-year and stands at 0.59 percent. Slippage
Ratio for Q3FY25 improved by 19 bps on-year and stands at 0.39 percent.
Advances
Gross advances of the bank in the reporting quarter rose 13.49 percent to Rs 40.68 lakh crore, from Rs 35.84 lakh crore in a year ago period. In a quarter ago period, gross advances stood at Rs 39.21 lakh crore.
Domestic corporate advances increased to Rs 11.76 lakh crore in October-December quarter, from Rs 11.57 lakh crore in a quarter ago period, and Rs 10.24 lakh crore in a year ago period.
Domestic retail personal advances jumped 11.65 percent to Rs 14.47 lakh crore, as per press release.
Deposits
In the reporting quarter, deposits of the lender increased by 9.81 percent to Rs 52.3 lakh crore, as compared to Rs 47.62 lakh crore in a year ago period.
Domestic CASA increased by 4.46 percent on-year to Rs 19.65 lakh crore in October-December quarter, from Rs 18.81 lakh crore in a year ago period. In a quarter ago period, domestic CASA of the bank stood at Rs 19.66 lakh crore.
Domestic term deposit has shown a sharp growth of 13.47 percent on-year to Rs 30.49 lakh crore in October-December quarter.
However, CASA ratio of the dipped 198 bps on-year and 83 bps on quarter. CASA ratio fell to 39.20 percent in Q3FY25, from 40.03 percent in Q2FY25, and 41.18 percent in Q3FY24.
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