The State Bank of India (SBI) has released its third-quarter results for the fiscal year 2025, showcasing impressive growth in net profit, credit expansion, and asset quality. The financial report reflects strong operational performance, driven by steady loan demand and improved asset management.
Here’s a breakdown of SBI’s Q3 FY25 financial performance, including profit figures, loan growth, and market reactions.
SBI Q3 2025 Results: Major Highlights
1. Net Profit Surges Over 80% YoY
- SBI reported a net profit of ₹16,891 crore for the quarter ending December 31, 2024.
- This represents a significant 84% year-on-year (YoY) growth, compared to ₹9,164 crore in Q3 FY24.
- The rise in profitability is attributed to strong lending growth and lower provisions for bad loans.
2. Net Interest Income (NII) Growth
- SBI’s Net Interest Income (NII), which represents earnings from core lending operations, stood at ₹41,446 crore.
- This marks a 4% YoY increase from ₹39,816 crore in the same quarter last year.
- However, the Net Interest Margin (NIM) saw a slight dip to 3.01%, down from 3.14% in the previous quarter.
3. Strong Credit Growth
- The bank’s domestic loan book grew by 14.06% on a YoY basis.
- Corporate lending increased by 14.86%, while retail personal loans expanded by 11.65%.
- The demand for loans remained robust across sectors, supporting SBI’s revenue growth.
4. Improved Asset Quality
- The Gross Non-Performing Assets (GNPA) ratio improved to 2.07%, compared to 2.13% in Q2 FY25.
- The Provision Coverage Ratio (PCR) rose to 74.66%, reflecting SBI’s stronger ability to cover bad loans.
- This decline in NPAs suggests better loan recoveries and disciplined lending.
5. Deposit Growth and Liquidity Position
- SBI’s total deposits increased by 9.76% YoY, ensuring a stable funding base.
- The Capital Adequacy Ratio (CAR) stood at 13.03%, indicating strong financial stability.
6. Market Reaction & Stock Performance
- Following the Q3 earnings announcement, SBI’s stock price saw a slight decline, closing at ₹753.95, down 1.58% from the previous trading session.
- Analysts suggest that while profit growth remains strong, the slight dip in NIM and market volatility may have influenced stock movements.
Key Takeaways from SBI’s Q3 FY25 Performance
Massive Profit Growth: 84% YoY increase in net profit.
Loan Growth: Corporate and retail lending saw double-digit growth.
Better Asset Quality: Lower NPAs and higher provision coverage.
Stable Deposits: Nearly 10% YoY growth in total deposits.
Stock Impact: Minor correction post-results due to margin pressure.
Conclusion: A Strong Quarter for SBI
SBI’s Q3 FY25 results highlight a solid financial performance, backed by higher profitability, improved loan recoveries, and steady credit growth. While Net Interest Margins remain under slight pressure, the bank’s expanding loan book and improved asset quality position it well for future growth.
Market participants will now focus on SBI’s Q4 FY25 performance and future guidance to assess whether this growth momentum continues.
Stay tuned for more updates on SBI’s financial results and stock market performance!
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