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Informist, Saturday, May. 3, 2025

 

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--SBI Jan-Mar net profit INR 186.43 bln
--Analysts saw SBI Jan-Mar net profit at INR 175.70 bln
--SBI Jan-Mar net profit INR 186.43 bln vs INR 206.98 bln year ago
--SBI Jan-Mar total income INR 1.439 tln vs INR 1.284 tln year ago
--SBI gross NPA ratio 1.82% as on Mar 31 vs 2.07% qtr ago, 2.24% yr ago
--SBI net NPA ratio 0.47% as on Mar 31 vs 0.53% qtr ago, 0.57% yr ago
--SBI Jan-Mar provisions INR 64.42 bln vs INR 16.10 bln year ago
--SBI Basel-III capital adequacy ratio 14.25% as on Mar 31
--SBI FY25 net profit INR 709.01 bln vs INR 610.77 bln year ago
--SBI FY25 total income INR 5.242 tln vs INR 4.668 tln year ago
--SBI provision coverage ratio 74.42% as on Mar 31
--SBI to pay INR 15.90 per share dividend
--SBI Jan-Mar NPA provisions INR 39.64 bln vs INR 32.94 bln year ago
--SBI Jan-Mar net interest income INR 427.75 bln, up 2.7% YoY
--SBI Jan-Mar domestic NIM 3.15% vs 3.15% Oct-Dec, 3.47% year ago
--SBI: Gross advances at INR 42.21 tln as on Mar 31, up 12% YoY
--SBI: Deposits at INR 53.82 tln as on Mar 31, up 9.5% YoY
--SBI: CASA ratio at 39.97% as on Mar 31 vs 39.20% a quarter ago
--SBI: Jan-Mar credit cost 0.39% vs 0.24% in Oct-Dec, 0.37% year ago
--SBI: Retail personal loans at INR 15.06 tln as on Mar 31, up 11.4% YoY
--SBI: Domestic corporate loans at INR 12.41 tln as on Mar 31, up 9% YoY
--SBI Jan-Mar domestic cost of deposit 5.11% vs 5.07% Oct-Dec, 4.81% yr ago
--SBI Jan-Mar fresh slippages INR 42.22 bln vs INR 38.67 bln year ago
--SBI Jan-Mar recoveries, upgrades INR 17.39 bln vs INR 20.52 bln year ago
--SBI: Special Mention Accounts-1, 2 at INR 33.33 bln as on Mar 31

 

NEW DELHI – State Bank of India's net profit for the quarter ended March fell 10% on year as provisions expectedly rose sharply. However, despite the lower bottom line, the profitability of the country's largest lender was better than expected.

 

At INR 186.43 billion, SBI's profit after tax for the final quarter of 2024-25 (Apr-Mar) was higher than analysts' expectations, with the average of estimates from 16 brokerages pegging the figure at INR 175.70 billion. Shares of SBI ended 1.4% higher on Friday at INR 800.00 on the National Stock Exchange. The bank said Saturday that it will pay a dividend of INR 15.90 per share.

 

In Jan-Mar, SBI's provisions normalised as they rose four times from a year ago and more than seven times from Oct-Dec to INR 64.42 billion. Provisions were lower in previous quarters on reversals, with Oct-Dec seeing SBI set aside only INR 9.11 billion net of write-backs after a large corporate account that was restructured during the pandemic exited from the restructured standard category. Provisions for bad loans in Jan-Mar, meanwhile, were up 20% on year at INR 39.64 billion, with the credit cost for the quarter rising to 0.39% from 0.24% in Oct-Dec and 0.37% in the final quarter of FY24. As at the end of March, SBI's provision coverage ratio stood at 74.42%, down 60 basis points from a year ago.

 

The higher bad loan provisions were driven by an increase in fresh slippages to INR 42.22 billion from INR 38.67 billion year ago, while recoveries and upgrades declined to INR 17.39 billion from INR 20.52 billion. The gross non-performing asset ratio declined to 1.82% as of Mar. 31 from 2.07% at the end of December and 2.24% a year ago, with the net bad loan ratio also cooling to 0.47% from 0.53% as of Dec. 31 and 0.57% at the end of FY24. In terms of the pre-NPA stage, SBI's Special Mention Accounts-1 and Special Mention Accounts-2 stood at INR 33.33 bln in total as of Mar. 31. These are accounts with exposure greater than INR 50 million as per Central Repository of Information on Large Credits data.

 

BUSINESS GROWTH

Despite SBI's gross advances rising 12% on year at the end of March at INR 42.21 trillion, the net interest income was up a mere 2.7% at INR 427.75 billion. With non-interest income 40% higher at INR 242.10 billion, total income for the reporting quarter rose 12% to INR 1.44 trillion. For FY25 as a whole, SBI's total income stood at INR 5.24 trillion, up a shade over 12%, with full-year profit up 16% at INR 709.01 billion. The domestic net interest margin for the reporting quarter was 3.15%, unchanged from Oct-Dec but down 32 bps from a year ago.

 

Driving SBI's growth in Jan-Mar were the small and medium enterprises and agricultural segments. While loans to SMEs were up 17% on year as of Mar. 31 at INR 5.06 trillion, farm loans increased 14% to INR 3.49 trillion. Retail personal loans, which accounted for 42% of SBI's domestic advances, were up 11% at INR 15.06 trillion, while corporate loans rose 9% to INR 12.41 trillion.

 

On the liability side, SBI's deposits were up 9% at the end of March at INR 53.82 trillion, with the current account, savings account ratio inching up to 39.97% from 39.20% at the end of December. Cost of domestic deposits, meanwhile, increased in Jan-Mar to 5.11% from 5.07% in Oct-Dec and 4.81% a year ago.

 

As on Mar. 31, SBI's Basel-III capital adequacy ratio stood at 14.25%.  End

 

Reported by Siddharth Upasani

Edited by Tanima Banerjee

 

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