State Bank of India (SBI) reported a 28% year-on-year (YoY) increase in net profit for Q2 FY25, reaching ₹18,331 crore, compared to ₹14,330 crore in the same period last year. The bank’s interest income rose by 12.32% YoY to ₹1.14 lakh crore, while net interest income (NII) saw a 5.37% YoY increase, amounting to ₹41,620 crore for the quarter ended September 30, 2024. However, the bank’s net interest margin (NIM) slightly declined by 15 basis points YoY to 3.14%.
On the asset quality front, SBI’s gross non-performing assets (NPAs) fell by 4.14% YoY to ₹83,369 crore, improving the gross NPA ratio to 2.13% from 2.55% in Q2 FY24. Similarly, net NPAs dropped 4.96% YoY to ₹20,294 crore, with the net NPA ratio declining to 0.53%. The provision coverage ratio also improved to 75.66%, and the slippage ratio for H1FY25 was recorded at 0.68%.
In Q2 FY25, SBI’s total deposits increased 9.13% YoY to ₹51.17 lakh crore. Current account deposits reached ₹2.78 lakh crore, marking a 10.05% increase, while term deposits rose 12.51% YoY to ₹29.45 lakh crore. The bank’s domestic credit-deposit ratio stood at 67.8%, with a stated focus on boosting its CASA (current account savings account) deposits.
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Gross advances for the quarter surged 14.93% YoY to ₹39.21 lakh crore. Notably, SME credit increased by 17.36% YoY to ₹4.57 lakh crore. SBI Chairman C.S. Setty highlighted that the bank has a robust corporate loan pipeline of ₹6 lakh crore and expects deposits to grow by 11-13% and credit by 13-14% in the near term.
Regarding its holdings, SBI reduced its stakes in SBI Cards, SBI Life Insurance, and Yes Bank Limited during the first half of FY25.
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