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Feb. 6, New Delhi, India: The net profit of the State Bank of India (SBI) increased by a noteworthy 84.32 percent year-over-year (YoY) to Rs16,891 crore in Q3FY25. Improved asset quality and increased operational profit were the main drivers of this impressive result.

SBI reports that its operational profit for the quarter was Rs23,551 crore, representing a YoY rise of 15.81%. Furthermore, the Return on Assets (ROA) improved to 1.04 percent, up 42 basis points (bps) YoY, while the Net Interest Income (NII) increased 4.09 percent YoY to Rs41,446 crore. In Q3 of FY25, the bank’s Net Interest Margin (NIM) for its domestic operations was 3.15 percent.

Strong credit growth was also seen by the bank, with total advances surpassing Rs40 lakh crore. With domestic advances expanding 14.06 percent year over year and foreign office advances rising 10.35 percent year over year, credit growth was 13.49 percent year over year.

SME lending increased 18.71% year over year, while agricultural loans saw a 15.31% YoY increase. Retail personal advances had an increase of 11.65% YoY, while corporate advances increased 14.86% YoY.

In terms of deposits, overall deposits increased 9.81% year over year, and as of December 31, 2024, the Current Account Savings Account (CASA) ratio was 39.20%.

With the Gross NPA ratio falling to 2.07 percent, an improvement of 35 basis points year over year, the bank has also shown better asset quality.

Better risk management and recoveries are shown by the Net NPA ratio, which increased by 11 basis points year over year to 0.53%. The Provision Coverage Ratio (PCR) improved by 49 basis points year over year to 74.66 percent.

Additionally, the bank’s financial soundness was further reinforced when the slippage ratio for Q3FY25 increased by 19 basis points YoY to 0.39 percent.

A healthy capital position was ensured by the Capital Adequacy Ratio (CAR), which at the conclusion of Q3FY25 was 13.03 percent.

64% of new savings accounts were created digitally via YONO, demonstrating the bank’s ongoing efforts to increase its online presence.

Furthermore, the percentage of transactions made via alternative banking channels rose from 97.7% in 9MFY24 to 98.1% in 9MFY25.

All things considered, the bank’s robust development trajectory is reflected in its high profitability, enhanced asset quality, and expanding digital banking footprint.

The bank is nevertheless in a strong position for further success in the next quarters, even if its net profit decreased somewhat from quarter to quarter as a result of increased provisions.