SBI Posts Rs 19,160 Crore Profit, Asset Quality Improves, NIM falls 0.13%

File Photo

State Bank of India (SBI) reported a 12 percent increase in net profit, earning Rs 19,160 crore in the April–June 2025 quarter, compared to Rs 17,035 crore during the same time last year.

Total income for the quarter grew 10.31 percent, reaching Rs 1.35 lakh crore, up from Rs 1.22 lakh crore a year ago.

However, net interest income (the bank’s main earnings from lending) stayed almost the same at Rs 41,072 crore, falling slightly by 0.13%. This is because the net interest margin (NIM), a measure of profitability from loans, dropped to 2.90 percent from the previous year.

Operating profit rose by 15.49 percent to Rs 30,544 crore, thanks to a 55.40 percent jump in non-interest income, which includes fees, commissions, and other income. This figure stood at Rs 17,346 crore.

The bank’s return on assets (ROA) – which shows how efficiently it uses its assets – improved slightly to 1.14% from 1.10%. But return on equity (ROE) – a measure of profitability for shareholders – slipped to 19.70 percent from 20.98 percent.

SBI’s cost-to-income ratio (which shows how much it spends to earn income) improved to 47.71%, down from 49.42% a year ago.

Business Growth
SBI’s total loans (gross advances) increased by 11.61% to Rs 42.55 lakh crore, with growth across sectors:

Retail personal loans: up 12.56 percent

SME loans: up 19.10 percent

Agricultural loans: up 12.67 percent

Corporate loans: up 5.70 percent

Total deposits rose by 11.66 percent to Rs 54.73 lakh crore:

Current account deposits: up 30.69 percent

Savings bank deposits: up 4.71 percent

The CASA ratio (current and savings accounts) slightly dropped to 39.36 percent from 40.70 percent.

Asset Quality & Capital
SBI’s asset quality got better:

Gross NPA (bad loans before recovery): dropped to 1.83 percent from 2.21 percent

Net NPA (after recovery): improved to 0.47 percent from 0.57 percent

Provision coverage ratio (PCR): stood at 74.49 percent, or 91.71 percent if accounts under collection are included.

Credit cost remained stable at 0.47 percent.

The bank remains financially strong:

Capital adequacy ratio (CRAR): 14.63 percent as of June 30, 2025

Common equity tier-1 (CET-1) ratio: 11.10 percent

If the profit from this quarter is included, the CRAR rises to 15.16 percent and CET-1 to 11.63percent.