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SBI Share Price Trade Lower After Release of Q3FY25 Earnings

Written by: Sachin GuptaUpdated on: Feb 7, 2025, 3:29 PM IST
SBI’s balance sheet showed strong growth, with credit growth at 13.49% YoY. Domestic advances grew by 14.06% YoY.
SBI Share Price Trade Lower After Release of Q3FY25 Earnings
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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.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 7, 2025, 9:58 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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