The State Bank of India (SBI) has announced its financial results for the first quarter of the fiscal year 2024-25 (Q1FY25), with a net profit of Rs 17,035 crores for Q1FY25, marking a year-on-year (YoY) growth of 0.89 per cent.
The operating profit for the quarter saw a more significant rise, increasing by 4.55 per cent YoY to Rs 26,449 crores. The bank’s Return on Assets (ROA) and Return on Equity (ROE) stood at 1.10 per cent and 20.98 per cent respectively, underscoring the bank’s efficient management and profitable operations.
The bank’s Net Interest Income (NII) for Q1FY25 rose by 5.71 per cent YoY, reflecting improved interest earnings. The Whole Bank Net Interest Margin (NIM) was recorded at 3.22 per cent, with the Domestic NIM slightly higher at 3.35 per cent. These figures indicate strong interest income relative to the bank’s interest-earning assets, showcasing SBI’s effective interest rate management.
SBI’s credit growth remained robust at 15.39 per cent YoY. Domestic Advances, a key component of this growth, expanded by 15.55 per cent YoY, driven primarily by Small and Medium Enterprise (SME) Advances, which surged by 19.87 per cent YoY.
Agricultural Advances also showed a healthy increase of 17.06 per cent YoY. Additionally, Retail Personal Advances and Corporate loans registered YoY growths of 13.60 per cent and 15.92 per cent respectively. The bank’s foreign offices also contributed to this positive trend, with their advances growing by 14.41 per cent YoY.
Whole Bank Deposits experienced an 8.18 per cent YoY increase, with CASA Deposits growing by 2.59 per cent YoY, resulting in a CASA ratio of 40.70 per cent as of June 30, 2024. This indicates a stable and growing deposit base, which is essential for the bank’s funding and liquidity.
The bank’s asset quality showed significant improvement, with the Gross Non-Performing Assets (NPA) ratio declining by 55 basis points (bps) YoY to 2.21 per cent. The Net NPA ratio also improved, dropping by 14 bps YoY to 0.57 per cent. The Provision Coverage Ratio (PCR), including advances under collection accounts (AUCA), stood at an impressive 91.76 per cent, with the overall PCR at 74.41 per cent.
Furthermore, the Slippage Ratio for Q1FY25 improved by 10 bps YoY to 0.84 per cent, and the Credit Cost for the quarter was reduced to 0.48 per cent. These improvements reflect SBI’s stringent risk management practices and effective recovery mechanisms.
SBI’s Capital Adequacy Ratio (CAR) as of the end of Q1FY25 was 13.86 per cent, indicating a strong capital position and the bank’s readiness to meet regulatory requirements while supporting future growth.
