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State Bank of India — Q2 FY25
SBI delivered a strong Q2 FY25 with PAT of INR 18,331 crore (+28% YoY), driven by robust credit growth of 14.93% YoY and stable asset quality (slippage ratio 0.51%, credit cost 0.38%).
bullish
high
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SBI delivered a strong Q2 FY25 with PAT of INR 18,331 crore (+28% YoY), driven by robust credit growth of 14.93% YoY and stable asset quality (slippage ratio 0.51%, credit cost 0.38%). Domestic advances grew 15.55% YoY, led by corporate (18%), agri (17%), and SME (17%). Deposits crossed INR 50 trillion milestone, though growth lagged at 9.13% YoY. Management reiterated 14-16% credit growth guidance and expects deposit growth to improve to 10-10.5%. Margins are expected to remain stable with MCLR hikes providing cushion. Key risk: potential stress in unsecured lending segments (Xpress Credit growth slowed to 7% YoY) and elevated SMA-1 book, though management sees recovery in H2.
SBI ने दूसरी तिमाही में 18,331 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछले साल से 28% ज्यादा है। इसकी वजह कर्ज देने में 14.93% की बढ़ोतरी और कम बुरे कर्ज (सिर्फ 0.51% नए बुरे कर्ज) रहना है। कंपनी ने कारोबार, खेती और छोटे कारोबारों को ज्यादा कर्ज दिया। जमा 50 लाख करोड़ रुपये पार कर गई, लेकिन बढ़त सिर्फ 9.13% रही। प्रबंधन का कहना है कि कर्ज 14-16% और जमा 10-10.5% बढ़ेगा। ब्याज दरों में बढ़ोतरी से मुनाफा स्थिर रहेगा। खतरा: बिना गारंटी के कर्ज में धीमी बढ़त (सिर्फ 7%) और कुछ खातों में देरी, लेकिन दूसरी छमाही में सुधार की उम्मीद है।
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Xpress Credit growth slowdown
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Credit Growth YoY
14.93%
+190bps YoY
Domestic advances grew 15.55% YoY; corporate led with 18% growth.
Slippage Ratio
0.51%
-10bps YoY
Retail slippage ratio at 0.31%; asset quality remains robust.
CASA Ratio
40%+
flat YoY
CASA grew 4.24% YoY; management aims to maintain above 40%.
Corporate Loan Pipeline
INR 6 trillion
+33% QoQ
Includes proposals under sanction and sanctioned but undisbursed; strong visibility.
What Changed vs Last Quarter
NEW
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.
NEW
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%.
NEW
ROA to remain above 1%
Management guides for ROA of at least 1%, with potential upside from non-interest income and cost control.
NEW
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.
DROPPED
NIM to remain stable within ±10 bps
Management expects net interest margin to stay near current levels, with variation not exceeding 10 bps.
DROPPED
Credit cost guidance of ~0.50%
Sustainable credit cost expected to be around 0.50% going forward.
DROPPED
CD ratio target of 70-72%
Credit-deposit ratio expected to be around 70%, potentially rising to 72%.
DROPPED
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.
NEW RISK
Xpress Credit growth slowdown
Xpress Credit grew only 7% YoY due to high repayments and process re-engineering; management expects double-digit growth in H2 but uncertainty remains.
NEW RISK
Elevated SMA-1 book
SMA-1 book jumped due to a large account (INR 9,000 crore) which has since regularized, but any recurrence could impact asset quality.
NEW RISK
Treasury income volatility
Other income boosted by trading gains and forex; sustainability depends on yield movements, which are uncertain.
RISK GONE
Elevated slippages in unsecured retail
Slippages in personal loans rose due to delayed salary credits in some states; though partly reversed, trend bears watching.
RISK GONE
Potential ECL provision impact
RBI's expected credit loss norms remain a consultation paper; management deflected quantification, citing it's premature.
RISK GONE
Regulatory scrutiny on CD ratio
RBI flagged loan growth exceeding deposit growth; management expects self-regulation but impact on growth is uncertain.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Deposit repricing at higher rates has pressured NIM; further compression could occur if competition intensifies.
Mentioned in Q1 FY24, Q4 FY24
Management expects net interest margin to remain stable around 3.4%, with marginal 5-6 bps variation.
Mentioned in Q1 FY25, Q3 FY24
Management expects net interest margin to stay near current levels, with variation not exceeding 10 bps.
Mentioned in Q1 FY24, Q2 FY24
If wage settlement exceeds the assumed 14%, additional monthly cost of ~INR 100 crore per 1% increase could pressure operating expenses.
Fast read
Guidance and risk preview
Management expects domestic credit growth to remain in the 14-16% range, supported by strong corporate pipeline and retail segments.
Xpress Credit grew only 7% YoY due to high repayments and process re-engineering; management expects double-digit growth in H2 but uncertainty rema...
View Risks →