State Bank of India (SBI), the country’s largest lender, has reported a slight rise in net profit for the first quarter of the current financial year. On August 3, SBI announced a net profit of Rs 17,035.16 crore, marking a 1 percent increase from the same quarter last year. However, sequentially, the net profit saw a decline of 17.7 percent.
SBI’s Q1FY25 Financial Highlights: Profitability
- Net Profit: SBI reported a net profit of ₹17,035 crores for Q1FY25, a year-on-year growth of 0.89%.
- Operating Profit: The bank’s operating profit increased by 4.55% year-on-year, reaching ₹26,449 crores.
- Return on Assets (ROA) and Return on Equity (ROE): For Q1FY25, ROA stood at 1.10% and ROE at 20.98%.
- Net Interest Income (NII): NII saw a year-on-year increase of 5.71% in Q1FY25.
- Net Interest Margin (NIM): The whole bank NIM was at 3.22%, with domestic NIM at 3.35%.
Balance Sheet
- Credit Growth: The bank experienced a 15.39% year-on-year growth in credit, with domestic advances growing by 15.55% and advances from foreign offices growing by 14.41%.
- Sectoral Advances:
- SME Advances: Up by 19.87% year-on-year.
- Agriculture Advances: Grew by 17.06% year-on-year.
- Retail Personal Advances: Increased by 13.60% year-on-year.
- Corporate Loans: Registered a 15.92% year-on-year growth.
- Deposits: Whole bank deposits grew by 8.18% year-on-year, with CASA deposits increasing by 2.59%. The CASA ratio stood at 40.70% as of June 30, 2024.
Asset Quality
- Gross NPA Ratio: Improved by 55 basis points year-on-year to 2.21%.
- Net NPA Ratio: Improved by 14 basis points year-on-year to 0.57%.
- Provision Coverage Ratio (PCR): Including AUCA, the PCR stood at 91.76%, with a standard PCR of 74.41%.
- Slippage Ratio: Improved by 10 basis points year-on-year, standing at 0.84% for Q1FY25.
- Credit Cost: For Q1FY25, credit cost was 0.48%.
Capital Adequacy
- Capital Adequacy Ratio (CAR): As of the end of Q1FY25, the CAR was 13.86%.
Alternate Channels
- Transaction Share: The share of alternate channels in total transactions increased from approximately 97.5% in Q1FY24 to about 98.2% in Q1FY25.
These figures highlight SBI’s continued growth and improved asset quality, despite some challenges in profitability on a sequential basis. The bank’s strategic focus on various sectors and its robust capital adequacy demonstrate its resilience and readiness for future growth.
