State Bank of India has reported 84% YoY growth in net profit at ₹16,891.44 crores for the quarter ended December 2024 (Q3 FY2025). The bank has posted a 4% growth in net interest income (NII), while the core fee income of the bank improved by 16% in Q3 FY2025.
The Net Interest Margin (NIM) of the bank eased to 3.01% in Q3 FY2025 compared to 3.22% in the corresponding quarter of the previous year. In this blog, we’ll uncover the detailed interpretation of SBI Q3 results and its key performance metrics.
SBI Q3 Results FY25: Healthy Loan Book and PAT Growth
- On the business front, the SBI has posted 11% growth in business with a strong 13% surge in the loan book.
- SBI has posted a strong 16% growth in core fee income to ₹7,267 crores, while the recoveries and other income jumped 40% to ₹2,532 crores.
- However, the treasury income declined 52% to ₹1,194 crores, and forex income slipped 95% to ₹48 crores, leading to a 4% dip in the overall non-interest income to ₹11,040.76 crores in the quarter ended December 2024.
- The bank has shown a 32% decline in provisions to ₹911.06 crores. The loan loss provisions jumped 31% to ₹2,305 crores. However, investment provisions fell 100% to ₹1 crore, while the bank has written back standard asset provisions of ₹499 crores and other provisions of ₹896 crores in Q3 FY2025.
- In 1-week, SBI share price fell by 3.17% (as on February 10, 2025).
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| Particulars (in ₹ crores) | Q3 FY25 | Q3 FY24 | Variance (%) |
|---|---|---|---|
| Interest Earned | 1,17,426.63 | 1,06,733.78 | 10% |
| Interest Expended | 75,981.12 | 66,918.05 | 14% |
| Net Interest Income | 41,445.51 | 39,815.73 | 4% |
| Other Income | 11,040.76 | 11,458.90 | -4% |
| Net Total Income | 52,486.27 | 51,274.63 | 2% |
| Operating Expenses | 28,935.46 | 30,938.55 | -6% |
| Operating Profits | 23,550.81 | 20,336.08 | 16% |
| Provisions & Contingencies | 911.06 | 687.85 | 32% |
| Profit Before Tax | 22,639.75 | 19,648.23 | 15% |
| Provision for Tax | 5,748.31 | 3,384.27 | 70% |
| PAT (Profit After Tax) | 16,891.44 | 9,163.96 | 84% |
| EPS (in ₹) | 75.7 | 67.4 | 12% |
SBI Q3 Results FY25: Asset Quality Stable
- The asset quality of the bank was stable in Q3 FY2025. The credit-to-deposit ratio increased to 77.8% at end December 2024 from 75.3% at end December 2023.
- The CASA ratio of the bank has declined to 37.6% at end December 2024 from 39.5% at end December 2023.
- The fresh slippages of loans stood at ₹4,146 crores in Q3 FY2025 compared with ₹4951 crores in the previous quarter and ₹5,046 crores in the corresponding quarter last year.
- The recoveries of NPAs stood at ₹1,206 crores and the write-off of loans was at ₹1,949 crores in Q3 FY2025.
- The standard restructured loan book of the bank stood at ₹13,707 crores end December 2024 compared to ₹14,830 crores a quarter ago.
- The provision coverage ratio was steady at 91.74% at end December 2024 compared to 92.21% a quarter ago and 91.49% a year ago.
- The capital adequacy ratio of the bank stood at 13.0% with Tier I ratio at 10.9% at end December 2024.
- The risk-weighted assets of the bank have increased 14% YoY to ₹35,65,895 crores end December 2024.
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| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Gross NPA (in ₹ Cr) | 84,360.38 | 83,369.23 | 86,748.81 | 1% | -3% |
| Net NPA (in ₹ Cr) | 21,377.64 | 20,294.32 | 22,408.38 | 5% | -5% |
| % Gross NPA | 2.07 | 2.13 | 2.42 | -6 bps | -35 bps |
| % Net NPA | 0.53 | 0.53 | 0.64 | Flat | -11 bps |
| % PCR | 91.74 | 92.21 | 91.49 | -47 bps | 25 bps |
| % CRAR – Basel III | 13.03 | 13.76 | 13.05 | -73 bps | -2 bps |
| % CRAR – Tier I – Basel III | 10.85 | 11.32 | 10.58 | -47 bps | 27 bps |
SBI Q3 Results: Business Highlights
1. Double digit business growth: The business of the bank has increased 11% YoY to ₹92,97,137 crores end December 2024, driven by a 13% surge in advances to ₹40,67,752 crores. Deposits rose 10% to ₹52,29,385 crores at end December 2024.
2. CASA deposits ratio declines: The CASA deposits of the bank increased 4% YoY to ₹19,65,237 crores at end December 2024. The current account deposits increased 14% to ₹2,85,013 crores, while saving account deposits rose 3% to ₹16,80,224 crores end December 2024.
The CASA ratio declined to 37.6% at end December 2024 compared to 39.5% at end December 2023, which eased from 38.4% a quarter ago. The term deposits have increased by 13% to ₹30,48,624 crores end December 2024. Overseas deposits increased 11% to ₹2,15,524 crores end December 2024.
3. Strong loan growth: Advances growth was driven by retail loans rising 12% YoY to ₹14,47,337 crores at end December 2024, while credit to agriculture increased 15% to ₹3,36,418 crores and MSME 19% to ₹4,96,359 crores at end December 2024.
The corporate credit has also moved up 15% to ₹11,76,303 crores end December 2024. The overseas credit has jumped 10% to ₹6,11,334 crores end December 2024.
4. Investment book growth: SBI’s investment book increased 6% YoY to ₹17,37,859 crores at end December 2024. The SLR book moved up 6% to ₹14,38,050 crores, while non SLR book rose 6% to ₹2,99,809 crores at end December 2024.
The AFS book dipped 54% to ₹2,54,423 crores, while the HTM book rose 20% to ₹12,87,232 crores at end December 2024. The duration of the AFS investment portfolio stood at 2.34 years end December 2024 compared with 1.92 years at end December 2023
5. Margins decline: The bank showed a 32 bps YoY jump in cast of deposits to 5.07%, while yield on advances rose a mere 1 bps YoY to 8.89% in Q3 FY2025. Thus, the NIM has declined 21 bps YoY, while slipped 13 bps QoQ to 3.01% in Q3 FY2025.
6. Branch expansion: The bank had a network of 22,740 branches end December 2024.
7. Book Value: SBI’s book value stood at ₹457.0 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was ₹429.2 per share at end December 2024.
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Reference:
SMC Global Securities Research Team
Author: All Content is verified by SMC Global Securities.
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