Sbin FY25 Annual Earnings Summary
4 quarters covered · ₹0 Cr revenue · ₹1,23,158 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Deposit growth of 8.18% YoY trails credit growth of 15.55%, potentially pressuring liquidity and NIM.
Q1 FY25 · mediumSlippages in personal loans rose due to delayed salary credits in some states; though partly reversed, trend bears watching.
Q1 FY25 · mediumRBI's expected credit loss norms remain a consultation paper; management deflected quantification, citing it's premature.
Q2 FY25 · mediumXpress Credit grew only 7% YoY due to high repayments and process re-engineering; management expects double-digit growth in H2 but uncertainty remains.
Q2 FY25 · mediumSMA-1 book jumped due to a large account (INR 9,000 crore) which has since regularized, but any recurrence could impact asset quality.
Q2 FY25 · mediumDeposit growth at 9.13% YoY trails credit growth of 14.93%, potentially constraining future lending if not addressed.
Q3 FY25 · mediumSMA-2 loans increased to INR 7,424 crore from INR 1,840 crore, though management attributed most to one account that has been regularized.
Q3 FY25 · mediumA shallow rate cut cycle could compress NIM by 2-3bps; deeper cuts may require active liability management.
Q4 FY25 · mediumFurther repo rate cuts could pressure net interest margins, though management expects to mitigate via deposit rate adjustments.
Q4 FY25 · mediumSupreme Court ruling on Bhushan Power & Steel could impact recoveries; management is studying the order and potential implications.
Q4 FY25 · mediumUnexpected prepayments from PSUs impacted corporate credit growth in Q4; similar deleveraging could recur.
Q1 FY25 · lowRBI flagged loan growth exceeding deposit growth; management expects self-regulation but impact on growth is uncertain.
What changed through the year
Q1 FY25 · NIM to remain stable within ±10 bps
Management expects net interest margin to stay near current levels, with variation not exceeding 10 bps.
Q1 FY25 · Credit cost guidance of ~0.50%
Sustainable credit cost expected to be around 0.50% going forward.
Q1 FY25 · CD ratio target of 70-72%
Credit-deposit ratio expected to be around 70%, potentially rising to 72%.
Q1 FY25 · Capital raise of INR 25,000 crore approved
Board approved raising INR 10,000 crore Tier 1 and INR 15,000 crore Tier 2 capital.
Q2 FY25 · Credit growth guidance of 14-16% for FY25
Management expects domestic credit growth to remain in the 14-16% range, supported by strong corporate pipeline and retail segments.
Q2 FY25 · Deposit growth target of 10-10.5%
Efforts to mobilize deposits through data analytics and branch-level focus aim to push deposit growth above 10%.
Q2 FY25 · ROA to remain above 1%
Management guides for ROA of at least 1%, with potential upside from non-interest income and cost control.
Q2 FY25 · Credit cost to be around 50 bps
Slippage ratio expected below 60 bps and credit cost below 40 bps, with PCR at 75.66% providing buffer.
Q3 FY25 · Credit growth of 14-16% for FY25
Management reiterated guidance of 14-16% credit growth for FY25, supported by strong corporate pipeline and retail momentum.
Q3 FY25 · Deposit growth of ~10% for FY25
Deposit growth guidance revised to ~10% for FY25, with focus on improving CASA mix.
Q3 FY25 · NIM above 3%
Management guided NIM to remain above 3% going forward, despite rate cut expectations.
Q3 FY25 · Credit cost of ~50bps through cycles
Credit cost guidance of around 50 basis points through business cycles, reflecting confidence in asset quality.
Q4 FY25 · Credit growth target of 12-13% for FY26
Management expects domestic credit growth of 12-13% in FY26, driven by corporate pipeline and SME/agriculture segments.
Q4 FY25 · NIM protection around 3%
Despite repo rate cuts, management aims to protect domestic NIM at around 3% through deposit rate adjustments.
Q4 FY25 · Cost-to-income ratio below 50-51%
Management guided to keep cost-to-income ratio below 50-51% by focusing on income growth and digital efficiencies.
Q4 FY25 · Equity capital raise up to INR 25,000 crore (enabling resolution)
Board approved raising equity capital up to INR 25,000 crore, contingent on business needs and market conditions.