Mumbai, India – State Bank of India (SBI), the nation’s largest lender by assets, announced its financial results for the fourth quarter of fiscal year 2024-25, reflecting resilience amid global economic challenges.
Financial Performance Highlights
- Net Profit: SBI reported a standalone net profit of ₹18,643 crore for Q4 FY25, marking a 9.9% decline from ₹20,698 crore in the same quarter the previous year. The decrease is attributed to higher provisions and the absence of one-time gains that benefited the prior year’s results.
- Net Interest Income (NII): The bank’s NII grew by 2.7% year-on-year to ₹42,775 crore, driven by steady loan growth.
- Operating Profit: Operating profit for Q4 FY25 increased by 8.83% to ₹31,286 crore, compared to ₹28,748 crore in Q4 FY24.
- Provisions: Provisions for bad loans surged by 300% year-on-year to ₹6,442 crore, reflecting a cautious approach amid economic uncertainties.
Asset Quality and Capital Position
- Gross Non-Performing Assets (GNPA): The GNPA ratio improved to 1.82% in Q4 FY25 from 2.24% in the same quarter the previous year.
- Net Non-Performing Assets (NNPA): NNPA ratio declined to 0.47% from 0.57% year-on-year, indicating enhanced asset quality.
- Capital Adequacy: SBI’s board approved raising ₹25,000 crore through equity capital in FY26 to strengthen its capital base, with the timing contingent on market conditions.
Dividend Declaration
The bank declared a dividend of ₹15.90 per equity share for FY25, up from ₹13.70 in FY24. The record date for dividend eligibility is May 16, 2025, with payment scheduled by May 30, 2025.
Strategic Outlook
SBI aims for a loan growth of 12-13% in FY26, maintaining levels similar to the previous year. The bank’s corporate loan pipeline stood at ₹3.4 trillion as of March 2025.
Chairman C.S. Setty highlighted that global tariff uncertainties, particularly those imposed by U.S. President Donald Trump, could impact the overall economic and investment scenario.
Market Performance
Ahead of the earnings announcement, SBI’s share price closed 1.51% higher at ₹800.05 on the BSE. Over the past five years, the stock has delivered returns exceeding 319%, though it experienced a 3.81% decline over the last year.
Despite a dip in quarterly profits, SBI’s robust operational performance, improved asset quality, and strategic initiatives position it well to navigate the evolving economic landscape. The bank’s commitment to strengthening its capital base and maintaining steady loan growth reflects its proactive approach to sustaining long-term growth.
