SBI Reports Robust Q2FY25 Results with 27.92% Increase in Net Profit and Strong Asset Quality Improvement

State Bank of India (SBI), the largest public sector bank in India, released its financial results for Q2FY25 and the half-year ending on September 30, 2024. The key financial highlights are as follows:

• Operating Profit: SBI’s operating profit surged by 50.87% year-over-year (YoY) to ₹29,294 crore in Q2FY25.
• Net Profit: The net profit for the quarter stood at ₹18,331 crore, representing a 27.92% YoY growth.
• Net Interest Income (NII): SBI reported a NII of ₹41,620 crore, an increase of 5.37% YoY.
• Return on Assets (ROA): The bank’s ROA for Q2FY25 improved by 16 basis points to 1.17%.
• Return on Equity (ROE): For the half-year, SBI’s ROE was 21.78%, reflecting strong profitability.
• Credit Growth: Domestic advances grew by 15.55% YoY, with notable contributions from Corporate Advances (up 18.35%) and Agri Advances (up 17.67%). The bank’s foreign office advances grew by 11.56%, resulting in a total credit growth of 14.93%.
• Deposits: Net bank deposits rose by 9.13%, with CASA (Current and Savings Account) deposits growing by 4.24%. The CASA ratio stood at 40.03%.

Regarding asset quality, SBI improved its metrics significantly:

• Gross NPA Ratio: The gross NPA ratio decreased by 42 basis points YoY to 2.13%.
• Net NPA Ratio: The net NPA ratio improved by 11 basis points YoY to 0.53%.
• Provision Coverage Ratio (PCR): SBI’s PCR, which includes the Asset Under Construction Allowance (AUCA), rose by 28 basis points YoY to 92.21%. The standard PCR (excluding AUCA) stood at 75.66%, a 21 basis points improvement YoY.

SBI’s capital adequacy remains robust, with its Capital Adequacy Ratio (CAR) at 13.76%.

The bank’s digital initiatives are gaining momentum, with 61% of savings bank accounts being opened digitally through the YONO platform. Additionally, digital transactions accounted for 98.2% of the total transactions in H1FY25, up from 97.7% in the same period last year.

SBI’s performance highlights strong loan growth, improved asset quality, and continued digital transformation, positioning the bank well for future growth.

Disclaimer: The information provided in this report is for general informational purposes only and is not intended as financial advice. All financial figures and statements are based on publicly available data and may be subject to change. Please consult a professional financial advisor before making any investment decisions.