SBI Share Price Trade Lower After Release of Q3FY25 Earnings

On February 7, 2025, SBI share price fell 1.11% and touched the day low of ₹740.55 at 09:50 AM, after opening at ₹761.80. The fall in SBI share price came after the release of Q3FY25 results. During Q3FY25, the bank achieved a significant increase in profitability, with a net profit of ₹16,891 crores, reflecting an impressive growth of 84.32% year-on-year (YoY). The operating profit for the same period grew by 15.81% YoY, reaching ₹23,551 crores. The return on assets (ROA) for the 9-month period ending FY25 stood at 1.09%, while the return on equity (ROE) was 21.46%.

Notably, the bank’s ROA for Q3FY25 saw a year-on-year increase of 42 basis points (bps), standing at 1.04%. Net Interest Income (NII) for Q3FY25 also demonstrated positive growth, increasing by 4.09% YoY. The whole bank and domestic net interest margins (NIM) for 9MFY25 were recorded at 3.12% and 3.25%, respectively, while for Q3FY25, they stood at 3.01% and 3.15%.

SBI Balance Sheet Highlights

The bank’s balance sheet showed strong growth, with credit growth at 13.49% YoY. Domestic advances grew by 14.06% YoY, and gross advances crossed ₹40 lakh crores. Foreign offices’ advances grew by 10.35% YoY. SME advances saw the highest growth at 18.71% YoY, followed by agri advances, which grew by 15.31% YoY. Corporate advances and retail personal advances registered YoY growths of 14.86% and 11.65%, respectively. Deposits for the whole bank grew by 9.81% YoY, with CASA (Current and Savings Account) deposits rising by 4.46% YoY. As of December 31, 2024, the CASA ratio stood at 39.20%.

SBI Asset Quality

The bank’s asset quality showed significant improvement. The gross NPA ratio improved by 35 bps YoY, standing at 2.07%, while the net NPA ratio decreased by 11 bps YoY to 0.53%. The Provision Coverage Ratio (PCR), including AUCA, improved by 25 bps YoY to 91.74%, and the PCR, excluding AUCA, improved by 49 bps YoY to 74.66%. The slippage ratio for the 9MFY25 improved by 8 bps YoY to 0.59%, while for Q3FY25, it stood at 0.39%, reflecting an improvement of 19 bps YoY. The credit cost for Q3FY25 stood at a low 0.24%.

Capital Adequacy & Alternate Channels

The bank’s Capital Adequacy Ratio (CAR) at the end of Q3FY25 stood at 13.03%, maintaining a healthy buffer to absorb any potential shocks and ensure financial stability.

Digital transformation has been a key focus for the bank, with 64% of savings bank accounts being acquired digitally through the YONO platform. The share of alternate channels in total transactions has also seen growth, increasing from approximately 97.7% in 9MFY24 to around 98.1% in 9MFY25, reflecting the growing adoption of digital banking services.

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