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Informist, Thursday, Feb. 6, 2025

By Kshipra Petkar

MUMBAI – State Bank of India is making efforts to change the deposit mix, Chairman C.S. Setty said at the post-earnings analyst call on Thursday. He added that the bank aims to increase the CASA ratio from the current levels of 39.20% to 40.00% going ahead.

The current account-savings account deposits were up 4.46% on year to INR 19.65 trillion as of Dec. 31. Out of this, current accounts grew 14.2% on year to INR 2.85 trillion and the saving accounts grew merely 3% on year to INR 16.80 trillion. The bank's management said that the shift from savings to term deposits was still being seen, and the bank was taking several steps to improve CASA deposits. Term deposits grew 13.47% on year to INR 30.48 trillion as on Dec. 31.

Bank's total deposits were up 9.8% on year to INR 52.3 trillion as of Dec. 31, with domestic deposits growing 9.8% on year to INR 50.13 trillion. The management said that till now the bank has opened 277 branches and aims to open a total of 400 branches in the current financial year. The bank has also maintained their growth guidance for the current financial year, with deposit growth at around 10% and credit growth at 14-16%.

On Thursday, State Bank of India reported an 84% increase in its net profit to INR 168.91 billion for the December quarter, beating analyst estimates. The country's largest bank's net interest income rose only 4% during the quarter, but provisions for bad loans jumped 31% on year. SBI's bottom line was sharply lower in the December quarter last year at INR 91.64 billion due to a one-time provision of INR 71.00 billion for increase in pension liabilities and Dearness Relief neutralisation.

On increasing the marginal cost of lending rates, the bank said that there was still room to increase the rates by 35 basis points. In December, the bank had kept the MCLR rates unchanged across all tenures, and were in the range of 8.20-9.10%.

On using artificial intelligence, the bank has found use-cases, such as coming out with hyper-personalised products, staff learning and risk management. Recently, the bank launched 'ask SBI', which is a repository of information for all staff members. Setty said that this would help answer customer queries too. The bank has also come out with a policy on responsible AI, he said.

On Thursday, shares of State Bank of India closed 1.8% lower at INR 752.25 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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