SBI Q3 FY25 Results: Strong Net Profit Jumps 83% YoY
State Bank of India Ltd: Overview
State Bank of India (SBI), established in 1955, is India’s largest public sector bank, with a rich legacy tracing back to the Bank of Calcutta in 1806. Headquartered in Mumbai, SBI operates an extensive network of over 22,405 branches across India and 235 offices in 29 countries, serving more than 45 crore customers. The bank offers a comprehensive range of financial services, including retail and corporate banking, investment banking, asset management, and insurance. SBI’s commitment to technological innovation is evident in its digital platforms like YONO (You Only Need One), which integrates various financial services into a single mobile application, enhancing customer convenience and engagement. The Indian banking industry is experiencing significant transformation, driven by technological advancements, regulatory reforms, and evolving customer expectations. Public sector banks like SBI are pivotal in promoting financial inclusion, especially in rural and semi-urban areas. The sector is witnessing increased competition from private banks and fintech companies, necessitating continuous innovation and customer-centric strategies. Despite challenges such as non-performing assets and economic fluctuations, the outlook for the Indian banking industry remains positive, with opportunities arising from economic growth, infrastructure development, and a burgeoning middle class.
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SBI has maintained its strong position in the domestic banking sector with a sustained market share of over 22%, driven by its extensive reach, customer trust, and value-added services. The bank’s current account balances witnessed a robust growth of 14.22% year-on-year, while total deposits surpassed ₹52 lakh crore, reflecting strong customer confidence. Domestic credit growth stood at 14.06% year-on-year, with significant expansion across various business segments. Whole Bank Advances crossed ₹40 lakh crore, supported by broad-based credit growth exceeding the market average, with the domestic credit-to-deposit ratio at 68.94%. SBI continues to demonstrate industry-leading asset quality, with a credit cost of just 0.24% for the quarter. The stressed book remains well provided for, with a provision coverage ratio (PCR) of 74.66%. Net Non-Performing Assets (NPA) stood at ₹21,378 crore, with additional provisions of ₹29,757 crore that are not included in the PCR, further strengthening the bank’s financial stability. The bank has also made significant strides in digital banking, with over 98% of transactions being conducted through alternate channels. The YONO platform continues to be a key growth driver, accounting for 64% of new savings accounts opened in Q3FY25 and boasting 8.45 crore registered customers. Customer credit has crossed the ₹6 trillion milestones for the first time, with gross advances growing by 10.35% year-on-year. Key international branches, including those in New York, GIFT City, Singapore, DIFC Dubai, and Hong Kong, have significantly contributed to this growth. Additionally, SBI has improved its asset quality, with the gross NPA ratio declining by 9 basis points year-on-year, reflecting its commitment to maintaining financial resilience and sustainable growth.
Business Segments
- Retail Banking: This segment caters to individual customers, offering products like savings and current accounts, personal loans, home loans, and credit cards. SBI’s extensive branch network and digital platforms facilitate widespread access to banking services across urban and rural areas.
- Corporate Banking: SBI provides a range of services to corporate clients, including working capital finance, term loans, cash management, and trade finance. The bank supports large, mid-sized, and small enterprises, contributing significantly to industrial and economic development.
- Treasury Operations: This segment manages the bank’s investments in government and corporate securities, money market operations, and foreign exchange activities. Effective treasury management enhances SBI’s profitability and liquidity position.
Subsidiary Information
- SBI Capital Markets Limited (SBICAPS): SBI Capital Markets Limited (SBICAPS) is a wholly-owned subsidiary of the State Bank of India, established in 1986, with a primary focus on providing investment banking and corporate advisory services. SBICAPS plays a critical role in advising large corporate, government entities, and financial institutions on mergers and acquisitions, capital raising, and financial restructuring.
- SBI DFHI Limited: SBI DFHI Limited is another key subsidiary of the State Bank of India, formed through the merger of Discount & Finance House of India and SBI Gilts Ltd. This entity serves as a primary dealer in the domestic debt market, handling a wide range of financial instruments, including government securities, treasury bills, and money market instruments. SBI DFHI remains a key player in India’s financial markets, supporting the stability and growth of the country’s debt capital market.
- SBI Global Factors Limited: SBI Global Factors Limited is a financial services subsidiary of the State Bank of India that specializes in factoring services, offering working capital solutions to businesses through the purchase of receivables. The company plays a crucial role in enabling businesses to improve their cash flow by converting credit sales into instant funds, thus ensuring smooth operational liquidity.
- SBI Life Insurance Company Limited: SBI Life Insurance Company Limited is a prominent joint venture between the State Bank of India and BNP Paribas Cardif, focusing on providing a comprehensive range of life insurance products. With a strong distribution network across India, SBI Life has been a key player in the life insurance sector, offering products such as term insurance, endowment plans, pension schemes, and unit-linked insurance plans (ULIPs).
- SBI Cards and Payment Services Limited: SBI Cards and Payment Services Limited is a key subsidiary of the State Bank of India, focusing on the issuance of credit cards and providing payment solutions to millions of customers. As one of India’s leading credit card issuers, SBI Cards offers a wide range of credit card products tailored to different consumer segments. With the rapid adoption of digital transactions in India, SBI Cards has seen significant growth in its customer base and transaction volumes.
Q3 FY25 Earnings
- Revenue of ₹124654 crore in Q3 FY25 up by 10.4% YoY from ₹112868 crore in Q3 FY24.
- Financing Loss of ₹-17643 crore in this quarter at a margin of -14% compared to -16% in Q3 FY24.
- Profit of ₹19484 crore in this quarter compared to a ₹11598 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 112868 | 124654 | 350848 | 439189 |
| Interest | 68092 | 77397 | 189981 | 259736 |
| Expenses | 62653 | 64890 | 204303 | 239750 |
| Financing Profit | -17858 | -17634 | -43439 | -60297 |
| Financing Margin | -16% | -14% | 12% | 14% |
| Other Income | 33103 | 43200 | 122534 | 155386 |
| Net Profit | 11598 | 19484 | 57750 | 69543 |
| NPM | 10.2% | 15.6% | 16.4% | 15.8% |
| EPS | 12.4 | 21.2 | 62.4 | 75.2 |