SBI Q1 Results: Profit Up 0.89%, Total Expenses Rise

State Bank of India's net profit rose for the first quarter of fiscal 2025. The public sector lender's standalone net profit increased 0.89% year-on-year to Rs 17,035 crore, according to an exchange filing on Saturday. Analysts polled by Bloomberg had estimated a net profit of Rs 16,595 crore.

Net interest income, or core income, for the lender rose 5.7% year-on-year to Rs 41,125 crore.

Other income, for the quarter, fell 7.4% year-on-year to Rs 11,161.8 crore. This includes fee income, earnings frorn foreign exchange and derivative transactions, profit or loss on sale/revaluation of investments, dividend from subsidiaries and recoveries made in written off accounts.

Operating Profit for Q1 grew 4.55% year-on-year to Rs 26,449 crore.

SBI Q1 FY25 Highlights (Standalone)

• Net profit up 0.89% to Rs 17,035.16 crore versus Rs 16,884.3 crore (YoY).

• Net interest income up 5.7% to Rs 41,125 crore versus Rs 38,904.9 crore (YoY).

• Gross NPA at 2.21% versus 2.24% (QoQ).

• NNPA at 0.57% versus 0.57% (QoQ).

The asset quality of the lender remained stable with gross non-performing asset ratio improving 3 basis points quarter-on-quarter to 2.21%. Net NPA ratio, however, stayed flat at 0.57% sequentially.

Provisions for the quarter rose 37.9% year-on-year to Rs 3,449.4 crore. Of this, NPA related provisions jumped 70% year-on-year to Rs 4,518.07 crore. The provision coverage ratio as on June 30 stood at 74.41%.

Fresh slippages in Q1 rose 3.1% year-on-year to Rs 7,903 crore. However, sequentially, they were up 104%.

Operating expenses for the lender were up 0.65% year-on-year to Rs 25.838 crore. Total expenses, excluding provisions and contingencies, for the lender rose to Rs 96,239.27 crore, up 16.3% year-on-year.

Domestic net interest margin, another profitability indicator, compressed 12 bps quarter-on-quarter and stood at 3.35%.

In terms of advances, the public sector lender witnessed a growth of 15.39% year-on-year to Rs 38.12 lakh crore. Here, domestic corporate advances rose 15.92% year-on-year to Rs 11.38 lakh crore, and domestic retail personal advances rose 13.6% year-on-year to Rs 13.68 lakh crore.

"External Commercial Borrowings, Local Credit and Trade Finance business are major drivers of customer credit," the bank said in its Q1FY25 investor presentation.

On the deposits side, SBI witnessed a growth of 8.18% year-on-year to Rs 49.01 lakh crore. Here, domestic CASA grew 2.59% year-on-year to Rs 19.14 lakh crore and domestic term deposits were up 12.2% year-on-year to Rs 27.89 lakh crore.

The domestic cost of deposits inched up 19 bps sequentially to 5%.

Credit cost for the lender stood at 0.48% in this quarter, compared to 0.29% in the previous quarter.

The capital adequacy ratio as at the end of Q1, for the bank, stood at 13.86%. In its investor presentation, the bank said, "Open to raising growth capital, if required."

The bank's board approved raising funds up to Rs 25,000 crore via issue of tier 1 and tier 2 bonds, subject to necessary approvals wherever required.