The largest public sector lender in India, State Bank of India (SBI), announced on Friday that its standalone net profit for the July–September quarter of the current fiscal year (Q2 FY25) increased by 28% year over year (Y-o-Y) to Rs 18,331.4 crore. The figure significantly outperformed Street projections, which predicted a 10–17% year-over-year increase in net profit.
SBI declared a net profit of Rs 14,33.03 crore for the September quarter of the previous year (Q2 FY24). In the meantime, SBI's Q2 earnings increased 7.6% sequentially from Rs 17,035.16 crore.
Operationally, SBI's net interest income—the money from interest collected less expenses—was Rs 41,620 crore for the reviewed quarter, up 5.3% year over year from an NII of Rs 39,500 crore in Q2 FY24. The NII was essentially stable during the current year's April–June quarter (Q1 FY25), compared to Rs 41,125.5 crore on a quarterly basis (Q-o-Q).
However, in Q2 FY25, the lender's net interest margin (NIM) decreased by 8 bps Q-o-Q and 16 bps Y-o-y to 3.27 percent. In Q2 of FY24, NIM was 3.43 percent; in Q1 of FY25, it was 3.35 percent.
Whole Bank and Domestic NIM are 3.18 and 3.31 percent for the half-year (H1 FY25), respectively. The bank said in a statement that its Domestic NIM was 3.27 percent and its Whole Bank NIM for Q2 FY25 was 3.14 percent.
The price of SBI shares fell 2.9% to Rs 834.3 a share during BSE intraday session.
SBI Q2 deposits and loans
SBI's Q2 loan book increased 14.9% year over year and 2.85% quarter over quarter to Rs 39.2 trillion, according to the company's financial statement.
Domestic corporate loans increased by 18.35% year over year and 1.6% quarter over quarter to Rs 11,57,171 crore. In contrast, domestic retail personal loans increased 12.32% year over year to Rs 13,96,624 crore. Retail loans increased by just 2% over the June quarter.
At the end of Q2 FY25, home loans accounted for Rs 7,64,141 crore, up 13.66 percent year over year and 3.3 percent quarter over quarter.
SBI said that its liabilities increased 9.13% year over year and 4.4% quarter over quarter to Rs 51.17 trillion in relation to deposits.
Deposits into domestic current account-savings accounts totaled Rs 19,65,899, an increase of 2.69 percent from quarter to quarter and 4.24 percent from year to year. In contrast, domestic term deposits were Rs 29,44,629 crore, representing a sequential increase of 5.56 percent and an annual increase of 12.5%.
As a result, SBI's CASA ratio decreased 185 basis points year over year and 67 basis points quarter over quarter to 40.03 percent at the end of the research period.
Q2 asset quality for SBI
In terms of asset quality, State Bank of India's gross non-performing assets were Rs 83,369 crore, which was only 1% more than the Rs 84,226-crore GNPA of Q1 FY25 and 4.14 percent lower than the Rs 86,974-crore GNPA recorded at the end of Q2 FY24.
At Rs 20,294 crore, NNPA also decreased by roughly 5% over Q2 FY24 and 6% over Q1 FY25. The NNPA ratio increased 4bps to 0.53% as a percentage of loans, while the GNPA ratio increased 8bps Q-o-Q to 2.13 percent.
The lender's provision coverage ratio was 75.45 percent without AUCA and 92.2% with AUCA.
In Q2 FY25, SBI's total provisions and contingency buffer was Rs 4,505.7 crore, up from Rs 3,449.4 crore set aside in Q1 FY25 and Rs 115.28 crore in the same quarter of the previous fiscal year.
According to SBI, RoA climbed 16 basis points year over year to 1.17 percent for the quarter.
