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Informist, Friday, Aug. 8, 2025

 

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--SBI Apr-Jun net profit INR 191.60 bln 
--Analysts saw SBI Apr-Jun net profit at INR 171.46 bln 
--SBI Apr-Jun net profit INR 191.60 bln vs INR 170.35 bln year ago
--SBI Apr-Jun total income INR 1.353 tln vs INR 1.227 tln year ago
--SBI gross NPA ratio 1.83% as on Jun 30 vs 1.82% qtr ago, 2.21% year ago 
--SBI net NPA ratio 0.47% as on Jun 30 vs 0.47% qtr ago, 0.57% year ago 
--SBI provision coverage ratio 74.49% as on Jun 30 
--SBI Apr-Jun provisions INR 47.59 bln vs INR 34.49 bln year ago
--SBI Apr-Jun NPA provisions INR 49.34 bln vs INR 45.18 bln year ago 
--SBI Basel-III capital adequacy ratio 14.63% as on Jun 30
--SBI Apr-Jun domestic NIM 3.02% vs 3.15% qtr ago, 3.35% year ago 
--SBI Apr-Jun net interest income INR 410.72 bln vs INR 411.25 bln yr ago 
--SBI: Domestic corporate loans at INR 12.034 tln as on Jun 30, up 5.7% YoY 
--SBI: Gross advances at INR 42.55 tln as on Jun 30, up 11.6% on year 
--SBI: Retail personal loans at INR 15.399 tln as on Jun 30, up 12.6% YoY
--SBI: Deposits at INR 54.73 tln as on Jun 30, up 11.7% on year 
--SBI Apr-Jun credit cost 0.47% vs 0.39% qtr ago, 0.48% year ago 
--SBI: CASA ratio at 39.36% as on Jun 30 vs 39.97% qtr ago, 40.70% year ago 
--SBI domestic cost of deposit 5.21% as on Jun 30 vs 5.11% qtr ago, 5% yr ago 
--SBI Apr-Jun fresh slippages INR 79.45 bln vs INR 79.03 bln year ago
--SBI Apr-Jun recoveries, upgrades INR 32.53 bln vs INR 36.66 bln year ago 
--SBI Q1 profit from treasury ops INR 80.83 bln vs INR 24.79 bln year ago 
--SBI: Special Mention Accounts-1, 2 at INR 50.25 bln as on Jun 30 

 

By Aaryan Khanna

 

MUMBAI – State Bank of India sharply beat Street estimates on its net profit for the June quarter as profits from treasury operations more than tripled on year. Operating metrics suggested sluggish growth on an annual basis, with the net interest income nearly flat from the year-ago quarter.

 

The nation's largest public sector bank reported a net profit of INR 191.60 billion for the June quarter, up 12.5% on year and 2.8% sequentially. An average of 14 brokerage estimates had pegged the bottom line at INR 171.46 billion. The net profit had fallen nearly 10% on year in the March quarter.

 

The gains were largely led by treasury profits, which rose to INR 80.83 billion in Apr-Jun, against INR 24.79 billion a year ago. This led other income to zoom over 55% on year to INR 173.46 billion, and total income also rose 10.3% on year to INR 1.35 trillion.

 

Meanwhile, net interest income was flat on year at INR 410.72 billion, and lower than the average analysts' estimate of INR 419.28 billion. After the quaterly results were declared, SBI's shares recovered some losses and closed 0.11% lower at INR 804.30 on the National Stock Exchange.

 

Margins took a hit as expected, after the Reserve Bank of India's Monetary Policy Committee cut the policy repo rate by 75 basis points in the June quarter alone, following a 25-bps rate reduction in February. The domestic net interest margin shrank 13 bps on quarter to 3.02% in the June quarter, and was sharply down from 3.35% a year ago.

 

In addition to a miss on interest income, provisions also rose sharply by 38% on year to INR 47.59 billion in Apr-Jun. Of this, provisions for non-performing assets were up 9.2% on year at INR 49.34 billion. The provision coverage ratio stood at 74.49% at June-end. The state-owned lender was able to keep operating expenses in check, and total expenses excluding provisions rose less than 9% on year to INR 1.05 trillion.

 

Asset quality was little changed from the trailing quarter, but improved from a year ago. The gross non-performing asset ratio was 1.83% on Jun. 30, from 1.82% on Mar. 31 and 2.21% a year ago. The net non-performing asset ratio was 0.47% at June-end, unchanged from a quarter ago and down from 0.57% on Jun. 30, 2024. Loans in special mention accounts-1 and -2, which are in default for less than 90 days when they become a non-performing asset, totalled INR 50.25 billion as on Jun. 30, up from INR 33.33 billion at end-March.

 

The bank's credit cost rose to 0.47% as on Jun. 30 from 0.39% a quarter ago, but was little changed from 0.48% a year ago, according to a press release by the bank. Its Basel-III capital adequacy ratio was 14.63% as of Jun. 30.

 

Fresh slippages rose sharply to INR 79.45 billion from INR 42.22 billion in the trailing quarter, but was up less than 1% on year. At the same time, recoveries and upgradations also rose nearly 90% sequentially to INR 32.53 billion, though they were lower than INR 36.66 billion a year ago.

 

The nation's largest lender grew its advances by 11.6% on year to INR 42.55 trillion on Jun. 30. Domestic advances were at INR 36.20 trillion, totalling nearly a fifth of the banking system's total advances. Domestic corporate loans were up only 5.7% on year at INR 12.03 trillion, while retail personal loans grew at a quicker pace of 12.6%, rising to INR 15.40 trillion by the end of June. In terms of industry mix, home loans made up nearly a quarter of the domestic loan book, while INR 5.00 trillion had been extended to the services sector at June-end.

 

Meanwhile, total deposits rose 11.7% on year to INR 54.73 trillion, with current account and term deposit growth outpacing the overall growth. Savings bank deposits grew only 4.7% on year to INR 17.47 trillion as of Jun. 30.

 

"Short-term cyclical factors notwithstanding, SA (savings accounts) remains strong for the Bank," SBI said in its investor presentation.

 

The current account, savings account ratio was at 39.36% on Jun. 30, compared to 39.97% a quarter ago and 40.70% a year ago. The decline in the low cost deposit ratio led to the domestic cost of deposits rising sequentially for the 12th straight quarter to 5.21%, from 5.11% a quarter ago and 5.00% a year ago.  End

 

Edited by Tanima Banerjee

 

 

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