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State Bank of India (SBKFF) Q3 2025 Earnings Call Highlights: Robust Profit Growth Amidst ...

In This Article:

  • Net Profit: INR16,891 crores, up 84% year-on-year.

  • Whole Bank Credit Growth: 13.49% year-on-year.

  • Domestic Credit Growth: 14.06% year-on-year.

  • CD Ratio: 68.94%.

  • Slippage Ratio: 0.39%.

  • Retail Personal Slippage Ratio: 0.32%.

  • Credit Cost: 0.24%.

  • PCR (Provision Coverage Ratio): 74.66%.

  • Total Deposits Growth: 9.81% year-on-year to INR52.29 trillion.

  • Term Deposits Growth: 13.47% year-on-year.

  • Current Account Deposits Growth: 14.22% year-on-year.

  • CASA Growth: 4.46% year-on-year with a CASA ratio of 39.2%.

  • Domestic Advances Growth: 14.06% year-on-year.

  • SME Growth: Over 18%.

  • Agriculture Growth: 15%.

  • Corporate Growth: 15%.

  • Retail Personal Segment Growth: 11.6%.

  • Foreign Offices Advances Growth: 10.35% year-on-year.

  • Net NPA Ratio: Improved by 11 basis points year-on-year to 0.53%.

  • Capital Adequacy Ratio (CAR): 13.03% without considering clawback of profits; 14.5% including profits for nine months.

  • CET1 Ratio: 10.99% including profits for nine months.

  • ROA (Return on Assets): Greater than 1%.

  • ROE (Return on Equity): Greater than 20%.

  • Total Assets: INR66.1 lakh crores.

  • Total Advances: INR40.68 lakh crores.

  • Total Deposits: INR52.29 lakh crores.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • State Bank of India (SBKFF) reported a significant year-on-year net profit increase of 84% for Q3 FY25, reaching INR16,891 crores.

  • The bank maintained a strong asset quality with a slippage ratio of 0.39% and a credit cost of 0.24%, indicating robust risk management.

  • Domestic credit growth was strong at 14.06% year-on-year, with notable growth in SME (18%), agriculture (15%), and corporate (15%) segments.

  • The bank's digital banking platform, YONO, saw substantial engagement, with over 8.5 crore customers registered and 64% of regular savings accounts opened through it in Q3 FY25.

  • State Bank of India (SBKFF) achieved a healthy capital adequacy ratio of 13.03%, which would increase to 14.5% when including profits for nine months, indicating a strong capital position.

Negative Points

  • Operating profit decreased significantly from INR29,294 crore in the previous quarter to INR23,551 crore, primarily due to trading losses and Forex losses.

  • The bank's margins dropped by 13 basis points sequentially, driven by increased cost of deposits and lower treasury gains.

  • There was a slowdown in the growth of express credit, with GNPAs in this segment increasing from 0.77% in March '24 to 1.11% as of Q3 FY25.

  • The SMA-2 numbers increased substantially to INR7,424 crores from INR1,840 crores, although this was attributed to one major account that has since been regularized.

  • The bank's cost of resources increased, impacting margins, and there is a concern about maintaining deposit growth without engaging in a rate war.