SBI Q1 Results: Net Profit Stood At Rs 17,035 Cr; Asset Quality Improves

SBI, the State Bank of India, released its financial results for the quarter that ended on June 30, 2024. In Q1FY25, its net profit grew by 0.89% YoY to Rs 17,035 Cr from Rs 16,884 Cr in the corresponding quarter last year.

SBI's net profit dropped -17.70% QoQ from Rs 20,698 Cr in the March 2024 quarter.
The bank said that although net interest income (NII) climbed by 5.71% YoY to Rs 41,125 Cr in the quarter under review from Rs 38,905 Cr in Q1FY24, Operating profit for Q1FY25 improved by 4.55% YoY to Rs 26,449 crores.

The bank's Q1FY25 ROA and ROE are 1.10% and 20.98%, respectively, while the domestic NIM is 3.35% and the whole bank NIM is 3.22%.SBI's credit growth continues as robust growth is seen across all segments while the whole bank advances cross Rs 38 trillion.

According to SBI, its credit growth was 15.39% YoY, whereas advances from its domestic offices grew by 15.55% YoY and those from its foreign offices grew by 14.41% YoY. SME advances (19.87% YoY) and agri advances (17.06% YoY) were the two main drivers of the development in domestic advances during the quarter under review.

According to SBI, its corporate loans and retail personal advances saw a YoY growth of 15.92% and 13.60%, respectively. CASA deposits jumped by 2.59% YoY, while total bank deposits climbed by 8.18% YoY. The CASA ratio reached 40.70% as of June 30.

While the net NPA ratio at 0.57% increased by 14 bps YoY, the Gross NPA ratio at 2.21% improved by 55 bps YoY, indicating an improvement in SBI's asset quality. The bank reported that its provision coverage ratio (PCR) is 74.41% and its PCR (with AUCA) is 91.76%. While the credit cost for Q1FY25 was 0.48%, the slippage ratio for Q1FY25 improved by 10 bps YoY to 0.84%.

According to SBI, the percentage of transactions through alternate channels climbed from around 97.5% in Q1FY24 to approximately 98.2% in Q1FY25. Meanwhile, the capital adequacy ratio (CAR) was 13.86% at the end of Q1FY25.