SBI Q2 Results: Net Profit Rises 27.92% To Rs 18,331 Cr, NII Surges 5.37%; Asset Quality Improves

The financial results for the quarter and a half year that ended on September 30, 2024, were released today by State Bank of India (SBI), the largest public sector lender in the nation. The bank's operating profit for Q2FY25 jumped by 50.87% YoY to Rs 29,294 crores, while its net profit for the same period is Rs 18,331 crores, representing a gain of 27.92% YoY. SBI said that its ROA for the quarter, at 1.17%, grew by 16 basis points YoY, while its ROE and ROA for the half-year were 21.78% and 1.13%, respectively. SBI reported that its Net Interest Income (NII) for Q2FY25 was Rs 41,620 crore, up 5.37% YoY.

With domestic advances growing 15.55% YoY and foreign office advances growing 11.56% YoY, SBI reported credit growth of 14.93% YoY. Corporate Advances (18.35% YoY) and Agri Advances (17.67% YoY) are the main drivers of the bank's domestic advances growth, while SME and retail personal advances loans had YoY growth of 17.36% and 12.32%, respectively. SBI's net bank deposits increased by 9.13% year over year, with CASA deposits growing by 4.24%. As of September 30, the CASA ratio was 40.03%.

For the half-year, SBI's whole bank and domestic NIM were 3.18% and 3.31%, respectively, while for the second quarter of FY25, whole bank NIM was 3.14% and domestic NIM represented 3.27%.

SBI reported a 42-bps YoY improvement in its Gross Non-Performing Asset (NPA) ratio of 2.13% and an 11-bps YoY improvement in its Net NPA ratio of 0.53%. The bank's PCR, which includes AUCA, increased by 28 basis points year over year to 92.21%. The Provision Coverage Ratio (PCR) climbed 21 basis points year over year to 75.66%. According to SBI, its H1FY25 Slippage Ratio climbed by 2 basis points year over year to 0.68%. The slippage ratio for Q2FY25 is now 0.51%, up 5 bps YoY. The credit cost for the second quarter of FY25 was 0.38% of SBI.

According to the bank, its Capital Adequacy Ratio (CAR) was 13.76% at the end of Q2FY25. While the share of other channels in total transactions rose from about 97.7% in H1FY24 to about 98.2% in H1FY25, 61% of SB accounts were opened digitally using YONO.