Top News

DELHI Delhi: State Bank of India (SBI) on Saturday reported a standalone net profit of Rs 17,035 crore for the April-June quarter of 2024-25, up just 0.9 per cent from Rs 16,884.3 crore in the corresponding quarter of the previous year.According to a statement from SBI, the asset quality of the country's largest lender has improved somewhat and the bank's gross non-performing asset (NPA) ratio stood at 2.21 per cent of total loans as on June 30, as against 2.76 per cent as on June 30, 2023.The bank's net NPA stood at 0.57 per cent as on June 30, as against 0.71 per cent as on June 30, 2023.In absolute terms, gross NPA declined to Rs 84,226.04 crore as on June 30, 2023. was Rs 91,327.84 crore. Net NPA declined to Rs 21,554.69 crore as on June 30 from Rs 22,995.37 crore as on June 31, 2023. The slippage ratio of bad loans for the first quarter of FY25 increased by 0.1 percentage point to 0.84 percent. According to the statement, the public sector bank's deposits grew 8.18 percent to Rs 49.02 lakh crore during the first quarter from Rs 45.31 lakh crore in the same quarter of the previous year.

However, SBI's domestic CASA deposits grew 2.59 per cent year-on-year to Rs 19.15 lakh crore in the April-June quarter, while domestic term deposits grew 12.20 per cent year-on-year to Rs 27.9 lakh crore. CASA deposits are the amount deposited in the current and savings accounts of bank customers. It is the cheapest and major source of funds for banks. The public sector bank's CASA ratio fell sharply by 2.18 per cent year-on-year to 40.70 per cent as of June 30, 2024, from 42.88 per cent as of June 30, 2023. Therefore, it has to rely more on term deposits which is an expensive way of raising funds as the bank has to pay a higher interest rate. This in turn impacts the bank's profitability. In the April-June quarter, SBI's gross advances grew 15.39 per cent year-on-year to Rs 38.12 lakh crore. Domestic advances growth was driven by SME advances (19.87 per cent year-on-year), followed by agriculture advances which grew 17.06 per cent year-on-year, the press release said. Domestic corporate advances grew to Rs 11.39 lakh crore in the June quarter as against Rs 11.38 lakh crore in the same period a quarter ago and Rs 9,82 lakh crore in the same period a year ago.