State Bank of India (SBI), India's largest public sector lender, reported a robust 28 per cent year-on-year (YoY) growth in its standalone net profit, reaching Rs 18,331.4 crore for the July-September quarter of FY25. This performance significantly surpassed market expectations, which had projected a YoY profit increase in the range of 10-17 per cent.
In the same quarter of the previous year (Q2 FY24), SBI had posted a net profit of Rs 14,333.03 crore. On a sequential basis, the bank's Q2 FY25 profit rose by 7.6 per cent, up from Rs 17,035.16 crore in the previous quarter.
Operationally, SBI reported a net interest income (NII) of Rs 41,620 crore for the quarter under review, compared to Rs 39,500 crore in Q2 FY24, reflecting a Y-o-Y growth of 5.3 per cent. On a quarter-on-quarter (Q-o-Q) basis, the NII remained almost flat, with only a marginal change from Rs 41,125.5 crore in Q1 FY25.
However, the bank's net interest margin (NIM) contracted by 16 basis points (bps) year-on-year and 8 bps sequentially, falling to 3.27 per cent in Q2 FY25. This compares to NIMs of 3.43 per cent in Q2 FY24 and 3.35 per cent in Q1 FY25.
"Whole Bank and Domestic NIM for the half year (H1 FY25) stand at 3.18 per cent and 3.31 per cent, respectively. Whole Bank NIM for Q2 FY25 is at 3.14 per cent, and Domestic NIM is at 3.27 per cent," the bank said in a statement.
According to SBI's financial statement, the bank's gross advances (loan book) for Q2 grew by 14.9 per cent Y-o-Y and 2.85 per cent Q-o-Q, reaching Rs 39.2 trillion. Within this, domestic corporate loans increased by 18.35 per cent Y-o-Y and 1.6 per cent Q-o-Q to Rs 11.57 trillion. Meanwhile, domestic retail personal loans rose by 12.32 per cent Y-o-Y to Rs 13.97 trillion, with a more modest 2 per cent growth over the June quarter.
Within the personal loan segment, home loans amounted to Rs 7.64 trillion at the end of Q2 FY25, reflecting a Y-o-Y increase of 13.66 per cent and a Q-o-Q rise of 3.3 per cent.
On the deposit front, SBI reported a 9.13 per cent Y-o-Y and 4.4 per cent Q-o-Q growth in liabilities, which reached Rs 51.17 trillion. Domestic current account-savings account (CASA) deposits stood at Rs 19.66 trillion, up 4.24 per cent Y-o-Y and 2.69 per cent Q-o-Q. Domestic term deposits grew to Rs 29.45 trillion, marking a Y-o-Y increase of 12.5 per cent and a Q-o-Q rise of 5.56 per cent.
As a result, SBI’s CASA ratio contracted by 185 basis points (bps) Y-o-Y and 67 bps Q-o-Q, settling at 40.03 per cent at the end of Q2 FY25.