State Bank of India Q4 earnings: Net profit declines 10% to ₹18,643 crore, asset quality improves, provisions rise

State Bank of India (SBI), the country's largest lender, on Saturday, May 3, reported a net profit of ₹18,642.59 crore in the January-March quarter (Q4 FY25), marking a decline of 10% from ₹20,698.35 crore logged in the corresponding quarter of the previous fiscal year on the back of higher provisioning for non-performing assets.

SBI's provisions for non-performing assets jumped 20% annually to ₹3,964.23 crore as against ₹3,293.94 crore registered in the year-ago period. Sequentially, provisions jumped 72%.

The Mumbai-based lender's net interest income or the difference between interest earned and interest expended came in at ₹42,774.63 crore as against ₹41,655.19 crore in the year-ago period. Whole bank net interest margin (NIM) for Q4FY25 stood at 3%.

SBI's asset quality showed improvement in the fourth quarter of the financial year 2024-25, as its gross non-performing assets, as a percentage of total advances, came in at 1.82% as against 2.07% in the previous quarter. Its net non-performing assets came in at 0.47% as against 0.53% in the previous quarter.

In absolute terms, gross non-performing assets were ₹76,880.20 crore, while net non-performing assets were ₹19,666.92 at the end of the March quarter.

"Operating profit for FY25 crossed ₹1 lakh crore and grew by 17.89% year-on-year (YoY) to ₹1,10,579 crore, while operating profit for Q4 FY25 grew by 8.83% YoY to ₹31,286 crore. Net profit for FY25 stands at ₹70,901 crore, witnessing a growth of 16.08% YoY," SBI said in a press release.

SBI's whole bank advances surged 12% annually to ₹42 akh crore, with domestic advances growing at 11.56%. Its capital adequacy ratio (CAR) as of the end of FY25 stood at 14.25%.

SBI shares ended 1.51% higher at ₹800.05 a day ahead of its earnings announcement.