State Bank of India (SBI) has announced its financial results for the third quarter of the fiscal year 2024-2025 (Q3 FY25), covering the period from October to December 2024. Below is an overview and detailed analysis of the bank’s performance during this quarter.
Key Financial Highlights:
- Net Profit: SBI reported a standalone net profit of ₹16,891 crore in Q3 FY25, marking an 83% increase compared to the same quarter in the previous year. However, this represents a 7.8% decline from the ₹18,331 crore profit recorded in the preceding quarter.
- Net Interest Income (NII): The bank’s NII, which is the difference between the interest earned and the interest expended, stood at ₹41,445.51 crore for Q3 FY25. This reflects a 4% year-on-year growth from ₹39,815.73 crore in Q3 FY24.
Asset Quality:
- Gross Non-Performing Assets (GNPA): SBI’s GNPA ratio improved to 2.07% in Q3 FY25, down from 2.42% in the same quarter of the previous year and 2.13% in the preceding quarter.
- Net Non-Performing Assets (NNPA): The NNPA ratio decreased to 0.53% from 0.64% year-on-year, maintaining the same level as the previous quarter.
- Provision Coverage Ratio (PCR): As of December 31, 2024, the PCR stood at 74.66%. Including Advances Under Collection Account (AUCA), the PCR was 91.74%.
Capital Adequacy:
- The bank’s capital adequacy ratio (CAR) and other related metrics were not specified in the available sources.
Analyst Expectations:
- Kotak Institutional Equities had projected SBI’s Q3 FY25 net profit to be ₹14,530 crore, with an NII of ₹42,300 crore. The actual net profit surpassed these expectations, while the NII was slightly below the anticipated figure.
Conclusion:
SBI’s Q3 FY25 performance demonstrates significant year-on-year growth in net profit and improvements in asset quality indicators. The bank’s ability to enhance profitability while managing asset quality reflects its robust operational strategies. However, the quarter-on-quarter decline in net profit suggests the need for ongoing monitoring of performance trends.
For a comprehensive understanding, stakeholders are encouraged to review SBI’s official financial disclosures and analyst presentations.
