SBI Q4 results: Net profit falls by 9.9% Y-o-Y to Rs 18,643 crore

For the full FY25, SBI posted record net profits of Rs 70,901 crore, showing 16.08 per cent Y-o-Y growth. Board approves Rs 25,000 crore of equity capital raise in FY26

State Bank of India (SBI) on Saturday reported a decline of 9.9 per cent year-on-year (Y-o-Y) in its net profit to Rs 18,643 crore in the fourth quarter of the financial year 2024-25 (Q4FY25) from Rs 20,698 crore, mainly due to absence of one time provision write back during the fourth quarter of the previous financial year and increase in provisions. On the other hand, hefty trading and forex income boosted profitability.

 

Sequentially, net profits rose by 10.4 per cent from Rs 16,891 crore in Q3FY25.

 

For the full FY25, SBI posted record net profits of Rs 70,901 crore, showing 16.08 per cent Y-o-Y growth.

 

Its board recommended a dividend of Rs 15.90 per share for FY25. It had declared a dividend of Rs 13.7 per share in FY24. On Friday, the bank’s stock had closed 1.51 per cent higher at Rs 800.05 per share on the BSE.

 

Net interest income (NII) for the reporting quarter grew 2.69 per cent Y-o-Y to Rs 42,775 crore. Sequentially, NII grew 3.21 per cent.

 

The lender’s net interest margin (NIM) -- the difference between interest received and interest paid -- from domestic operations in Q4FY24 fell by 32 basis points to 3.15 per cent, down from 3.47 per cent in the same period the previous year. Sequentially, NIM was flat.

 

“There was some impact because of the 25 bps rate cut. While we have contained the cost of resources there was some impact on margin which will be reflected going forward” SBI chairman CS Setty said during the post earnings press conference. He said SBI expects two more policy repo rate cut by the central bank, including one in the next meeting in June, and as a result, there will be pressure on margins.

 

“The outlook is completely dependent on the rate cycle. With a benign interest scenario, we expect there would be further rate cuts. We expect another 50 bps rate cut, with 25 bps in the next policy. So there will definitely be pressure on margins. Because some of the portfolio gets re-priced immediately due to the rate cut but deposits take time. It generally takes 12-18 months to get the existing stock re-priced,” he said. About 29 per cent of the SBI loan book is linked to the repo rate which gets repriced immediately following a rate action.

 

Non-interest income, comprising fees, commission, and treasury earnings, expanded to Rs 24,210 crore in Q4FY25 from Rs 17,369 crore in Q4FY24, up almost 40 per cent.  

 

Treasury gains, fees from loan applications and cross-selling and foreign exchange boosted the non-interest income. Trading profit almost doubled to Rs 6879 crore while forex income jumped to Rs 2859 crore from Rs 225 crore a year ago.

 

The cost-income ratio fell to 51.64 per cent (excluding wage revisions and one-time items) on March 31, 2025, from 55.66 per cent a year ago.

 

Total provisions for the reported quarter increased to Rs 12,643 crore from Rs 8,049 crore, up 57 per cent. Loan loss provision increased 20.35 per cent to Rs 3,964 crore.

 

Referring to provisions impacting the bottomline in Q4, Setty said the focus is on strengthening the balance sheet and creating consistency in performance. “Our preference is that if any costs are visualised, let us take them upfront. Last year also pension provisions worth Rs 7,000 crore were made in one go”, Setty said in post-result analyst call.

 

SBI reported credit growth of 12.03 per cent Y-o-Y at Rs 42 trillion as of March 31, 2025. Of this, domestic advances grew by 11.56 per cent.

 

Going ahead, Setty said they have revised the credit growth projection downward to 12-13 per cent from 14-16 per cent projected earlier.

“The only upside that could be possible is if the tariff related clarification comes. Though the Indian economy is less impacted by the tariff, the uncertainty may impact the overall economic activity and investment scenario. On that background, we believe that there would be some moderation in credit growth,” he said.

 

Retail personal advances and corporate loans registered Y-o-Y growth of 11.40 per cent and nine per cent, respectively. Home loans grew 14.46 per cent.

 

Its total deposits expanded by 9.48 per cent Y-o-Y to Rs 53.8 trillion. The share of low cost deposits - current account and savings account (CASA)- stood at 6.34 per cent in March 2025. The deposits are expected to grow at 9-10 per cent YoY in the current financial year.

 

The asset quality profile improved with Gross Non-Performing Assets declining to 1.82 per cent as of March 31, 2025, improved by 42 bps from Q4FY24. The net NPAs improved by 10 bps to 0.47 per cent. The provision coverage ratio (PCR), including those for write-offs, stood at 92.08 per cent in March 2025. “We maintained stellar asset quality with slippage ratio at 0.55 per cent. The asset quality of the bank continues to remain strong for the last five years,” Setty said. 

Its capital adequacy ratio stood at 14.25 per cent with the common equity tier I (CET-1) of 10.81 per cent. SBI board has approved raising equity capital of Rs 25,000 crore for FY26 through one or more tranches. 

  “Although we are open to capital raising such plans are contingent upon business needs and market conditions,” Setty said while adding Setty said the current capital base is adequate to grow the loan book by Rs 8 trillion.  

For the full FY25, SBI posted record net profits of Rs 70,901 crore, showing 16.08 per cent Y-o-Y growth. Operating profit crossed Rs 1 trillion for the first time to hit Rs 1.1 trillion in FY25, up almost 18 per cent year on year.