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State Bank of India aims to cross Rs.1 Lakh Crore Operating Profit Milestone in FY25


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State Bank of India (SBI) has set ambitious goals for itself in order to surpass the operating profit milestone of ₹1-lakh crore in financial year 2025 (FY25). The bank aims to build upon its strong performance and achieve even greater heights. In the nine months from April to December of FY24, SBI recorded an operating profit of ₹65,050 crore, which marked a 10.08% increase compared to the previous year. In FY23, the bank achieved an operating profit of ₹83,713 crore. Chairman Dinesh Kumar Khara expressed the bank’s desire to continue its impressive growth trajectory and become an even more profitable financial services company.

Key Execution Priorities

To achieve its financial targets, SBI has identified several key execution priorities. These include:

  1. Customer Centricity and Ease of Banking: The bank aims to enhance the customer experience and make banking more convenient for its customers.
  2. Focus on Under-penetrated Segments, New Generation Customers & Emerging Sectors: SBI intends to tap into untapped markets and cater to the needs of new generation customers and emerging sectors.
  3. Mobilization of Low-Cost Deposits: The bank aims to attract low-cost deposits from all regions to optimize its funding costs.
  4. Adherence to Robust Underwriting Standards & Controlling Slippages: SBI is committed to maintaining stringent underwriting standards and minimizing loan defaults.
  5. Boosting Non-Interest Income: The bank aims to diversify its revenue streams by increasing non-interest income.
  6. Optimizing Costs: SBI will focus on cost optimization initiatives to improve operational efficiency.

Growth Projections for FY25

SBI projects a growth of 14% in domestic deposits and 14.65% in domestic advances for FY25, based on internal projections. Overall, including overseas operations, deposits and advances are expected to grow by 13.50% and 14% respectively. As of December 2023, SBI’s domestic deposits grew by 12.84% year-on-year, reaching ₹45,67,927 crore. The bank’s total deposits, including foreign office deposits, increased by 13.02% to ₹47,62,221 crore. Domestic advances experienced a growth of 14.47% year-on-year, amounting to ₹30,30,273 crore. The total whole bank advances, including foreign offices, increased by 14.38% to ₹35,84,252 crore.

Net Interest Margin (NIM) and Asset Quality Targets

SBI aims to achieve a net interest margin (NIM) of 3.35% for the whole bank and 3.58% for domestic operations. In the nine months of FY24, the bank recorded a whole bank NIM of 3.28% and a domestic NIM of 3.41%.

Furthermore, the bank aims to maintain the gross non-performing assets (GNPAs) and net NPAs below 2% and 0.60% respectively, of gross and net advances. As of December 2023, SBI’s GNPAs and NNAPs stood at 2.42% and 0.64% respectively. Chairman Khara emphasized the importance of maintaining a high-quality portfolio and keeping slippages under control, especially considering the current favorable asset quality cycle.

SBI’s commitment to these targets demonstrates its determination to continue its growth trajectory, prioritize customer satisfaction, and maintain a robust financial position in the Indian banking sector.

One Comment

  1. glad to know that our Bank is progressing day by day and come out from NPA and come into considerable profit YoY.
    This all due to make splendid policies by the well experienced Top Management

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