Key Points
- SBI’s Q2 FY25 net profit increased by 28% to Rs 18,331 crore.
- Interest income grew by 12.32%, reaching Rs 1.14 lakh crore.
- Net interest income rose by 5.37%, amounting to Rs 41,620 crore.
- Gross and net non-performing assets (NPA) decreased, showing better asset quality.
- Total deposits grew by 9.13% to Rs 51.17 lakh crore.
- Gross advances increased by 14.93%, reaching Rs 39.21 lakh crore.
- SBI’s stake in its subsidiaries, including SBI Cards and SBI Life, slightly reduced.
Looma News
State Bank of India (SBI) showed strong results for Q2 FY25, with a 28% jump in net profit to Rs 18,331 crore, up from Rs 14,330 crore in the same quarter last year. The bank’s interest income rose by 12.32% to Rs 1.14 lakh crore, and net interest income grew by 5.37%, reaching Rs 41,620 crore. However, its net interest margin (NIM) fell by 15 basis points year-on-year, standing at 3.14% for Q2 FY25.
Asset Quality Improvement
SBI’s asset quality improved in Q2 FY25. Gross non-performing assets (NPAs) dropped by 4.14% to Rs 83,369 crore from Rs 84,226 crore in Q1 FY25, and from Rs 86,974 crore in Q2 FY24. Net NPAs also fell by 4.96% year-on-year to Rs 20,294 crore. The gross NPA ratio improved to 2.13% from 2.21% in Q1 FY25, and the net NPA ratio decreased to 0.53% from 0.57% in the previous quarter. The provision coverage ratio improved to 75.66%, up by 21 basis points compared to last year.
Deposit and Advance Growth
Total deposits increased by 9.13% year-on-year, reaching Rs 51.17 lakh crore. Current account deposits grew by 10.05% to Rs 2.78 lakh crore, while savings bank deposits rose to Rs 16.88 lakh crore, up from Rs 16.33 lakh crore in Q2 FY24. Term deposits, which make up the largest part of total deposits, grew by 12.51% to Rs 29.45 lakh crore. SBI also saw strong growth in advances, with gross advances increasing by 14.93% to Rs 39.21 lakh crore. Corporate loans grew to Rs 11.57 lakh crore, and SME credit grew by 17.36% year-on-year, reaching Rs 4.57 lakh crore.
Stake Reductions and Other Developments
SBI made small reductions in its stakes in several subsidiaries. Its stake in SBI Cards and Payment Services Ltd fell slightly from 68.63% to 68.61%, and its stake in SBI Life Insurance dropped from 55.42% to 55.39%. Additionally, SBI’s stake in Yes Bank decreased from 26.13% to 23.98% after other investors exercised share warrants. On August 9, 2024, SBI sold 2% of its stake in The Clearing Corporation of India Limited (CCIL). As of November 8, 2024, SBI’s stock was trading 1% lower at Rs 851.15 per share.
