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Informist, Tuesday, Nov. 4, 2025

 

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--SBI Jul-Sept net profit INR 201.60 bln 
--Analysts saw SBI Jul-Sept net profit at INR 180.39 bln 
--SBI Jul-Sept net profit INR 201.60 bln vs INR 183.31 bln year ago 
--SBI Jul-Sept total income INR 1.35 tln vs INR 1.29 tln year ago 
--SBI gross NPA ratio 1.73% as on Sept 30 vs 1.83% qtr ago, 2.13% yr ago
--SBI Jul-Sept provisions INR 54 bln vs INR 45.06 bln year ago
--SBI net NPA ratio 0.42% as on Sept 30 vs 0.47% qtr ago, 0.53% yr ago 
--SBI Jul-Sept NPA provisions INR 41.32 bln vs INR 36.31 bln year ago 
--SBI Basel-III capital adequacy ratio 14.62% as on Sept 30
--SBI provision coverage ratio 75.79% as on Sept 30
--SBI Apr-Sept net profit INR 393.20 bln vs INR 353.67 bln year ago
--SBI Apr-Sept total income INR 2.70 tln vs INR 2.52 tln year ago
--SBI Jul-Sept net profit includes one-time income of INR 45.93 bln
--SBI Jul-Sept profit excluding exceptional income INR 155.66 bln
--SBI Q2 one-time gain of INR 45.93 bln from YES Bank stake sale
--SBI Jul-Sept domestic NIM 3.09% vs 3.02% qtr ago, 3.27% yr ago 
--SBI Jul-Sept net interest income INR 429.84 bln, up 3.3% on year 
--SBI: Special Mention Accounts-1, 2 at INR 37.62 bln as on Sept 30 
--SBI Q2 recoveries, upgrades INR 22.79 bln vs INR 26.00 bln year ago 
--SBI Q2 fresh slippages INR 47.54 bln vs INR 48.71 bln year ago 
--SBI domestic retail personal loans INR 15.93 tln on Sept 30, up 14% on yr 
--SBI domestic corporate loans INR 12.39 tln as on Sept 30, up 7.1% on year 
--SBI Jul-Sept credit cost 0.39% vs 0.47% qtr ago, 0.38% yr ago 
--SBI CASA ratio 39.63% as on Sept 30 vs 39.36% qtr ago, 40.03% yr ago 
--SBI deposits at INR 55.92 tln as on Sept 30, up 9.3% on year 
--SBI gross advances INR 44.20 tln as on Sept 30, up 12.7% on year

 

By Aaryan Khanna

 

NEW DELHI – State Bank of India's net profit for the September quarter surpassed estimates due to a one-time gain from the proceeds of its stake sale in YES Bank Ltd. in the reporting quarter. Its operating profit for Jul-Sept contracted both sequentially and on a year-on-year basis, while provisions were up from the same quarter a year ago.

 

The country's largest lender reported a net profit of INR 201.60 billion, including an exceptional gain of INR 45.93 billion from the YES Bank stake sale. SBI sold its 13.18% stake in YES Bank to Sumitomo Mitsui Banking Corp. for INR 88.89 billion, which resulted in a one-time profit, the bank said in notes to its accounts. The bottom line was up 10% on year and 5.2% on quarter.

 

Excluding the exceptional income, SBI's net profit for the September quarter was INR 155.66 billion. The bank was expected to report a net profit of INR 180.39 billion, according to the average of estimates from 11 brokerages.

 

Operating profit fell to INR 273.11 billion from INR 305.44 billion a quarter ago and INR 292.94 billion a year ago. SBI's shares were volatile after the earnings, but ended 0.8% higher at INR 957.60 on the National Stock Exchange Tuesday. The bank declared its results during market hours.

 

Total expenses grew 7.8% on year to INR 1.08 trillion, outpacing the 4.5% growth in total income to INR 1.35 trillion. Operating expenses grew over 12% on year to INR 310 billion. The bank's net interest earned – the difference between interest earned and expended – rose by a sluggish 3.3% on year to INR 429.84 billion in the September quarter. However, this was higher than analysts' estimate of INR 411.96 billion of net interest income.

 

SBI's net interest margin unexpectedly expanded on quarter, but fell from a year ago. In Jul-Sept, the bank's domestic net interest margin was 3.09% against 3.02% in the June quarter and 3.27% in the year-ago period. Most banks have reported a quarter-on-quarter contraction in the margin as their loans repriced quicker than deposits following the Reserve Bank of India's Monetary Policy Committee cutting the repo rate by 100 basis points between February and June.

 

Asset quality metrics also painted a mixed picture. Provisions rose 20% on year and 13.5% sequentially to INR 54.00 billion in the reporting quarter. However, the gross non-performing asset ratio fell to 1.73% as on Sept. 30 from 1.83% a quarter ago and 2.13% a year ago. The net non-performing asset ratio also declined to 0.42% as of September-end, down from 0.47% as on Jun. 30 and 0.53% as of Sept. 30, 2024.

 

The provision coverage ratio improved 130 bps on quarter and 13 bps on year to 75.79% as on Sept. 30. Provisions for non-performing assets in the reporting quarter rose to INR 41.32 billion, up 13.8% on year, but lower than INR 49.34 billion in the June quarter. Credit cost in Jul-Sept was similar to the year-ago quarter at 0.39%, and fell from 0.47% in the June quarter.

 

The state-owned lender reported fresh slippages of INR 47.54 billion in the September quarter, down from INR 48.71 billion a year ago. However, recoveries and upgrades also fell to INR 22.79 billion from INR 26.00 billion a year ago. The outstanding in special mention 1 and 2 accounts, which were loans overdue but for less than 90 days, fell to INR 37.62 billion from INR 50.25 billion a quarter ago.

 

For the half-year ended September, SBI posted a net profit of INR 393.20 billion, including the exceptional items, up 11.2% on year. Total income rose only 7.3% on year in Apr-Sept to INR 2.70 trillion. The bank's capital adequacy ratio was 14.62% as of Sept. 30. 

 

The gross advances of India's largest lender grew at a quicker pace than the banking industry at INR 44.20 trillion, up 12.7% on year. Comparable RBI data showed the industry's loans were up 11.4% on year as of Oct. 3. Domestic advances were up 12.3% on year at INR 37.43 trillion, SBI said. The domestic yield on advances fell 10 bps sequentially to 8.68% in the September quarter.

 

Around a third of total domestic advances were in the corporate book, which grew 7.1% on year to INR 12.39 trillion. Retail personal loans jumped 14% on year to INR 15.93 trillion as of September end. Of this, home loans grew 15.2% on year to INR 8.80 trillion as of Sept. 30. Loans to small and medium enterprises made up 14.5% of the loanbook, while agriculture loans were about 10% of domestic advances.

 

Meanwhile, the bank's deposits rose 9.3% on year to INR 55.92 trillion in Jul-Sept. Current-account-savings-account deposits were up 8.1% on year at INR 21.24 trillion, with the share of the low cost deposits falling 40 bps on year to 39.63% of the total liability base. "Strengthening liability franchise and CASA mobilisation remains the strategic focus of the Bank," SBI said in its investor presentation.  End

 

Edited by Tanima Banerjee

 

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