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State Bank of India — Q3 FY25
SBI reported a stellar Q3 FY25 with net profit surging 84% YoY to INR 16,891 crore, driven by robust credit growth of 13.49% YoY, industry-leading asset quality (slippage ratio 0.39%, credit cost 0.24%), and strong fee income.
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SBI reported a stellar Q3 FY25 with net profit surging 84% YoY to INR 16,891 crore, driven by robust credit growth of 13.49% YoY, industry-leading asset quality (slippage ratio 0.39%, credit cost 0.24%), and strong fee income. Domestic advances grew 14.06% YoY led by SME (+18%), agriculture (+15%), and corporate (+15%). Deposits rose 9.81% YoY to INR 52.29 trillion, with CASA at 39.2%. NIM compression of 13bps QoQ was due to higher cost of funds and MTM losses, but management guided NIM above 3% and credit cost at ~50bps. The corporate pipeline stands at INR 483,000 crore, supporting 14-16% credit growth guidance. Digital initiatives (YONO, AI) and budget tailwinds (tax cuts, MSME push) provide further impetus. Risk: Elevated SMA-2 (INR 7,424 crore) though largely attributed to one regularized account.
SBI ने तीसरी तिमाही में शानदार प्रदर्शन किया। मुनाफा पिछले साल की तुलना में 84% बढ़कर 16,891 करोड़ रुपये हो गया। इसकी वजह है कर्ज देने में 13.49% की बढ़ोतरी, बेहतरीन कर्ज गुणवत्ता (जहां बुरे कर्ज का अनुपात बहुत कम 0.39% है) और मजबूत फीस आय। छोटे कारोबारों, किसानों और बड़ी कंपनियों को दिए कर्ज में 15-18% की बढ़ोतरी हुई। जमा भी बढ़कर 52.29 लाख करोड़ रुपये हो गई। ब्याज दरों में गिरावट और फंड की लागत बढ़ने से मुनाफे पर थोड़ा दबाव है, लेकिन कंपनी का कहना है कि आगे मुनाफा 3% से ऊपर रहेगा। डिजिटल सेवाओं (जैसे YONO) और सरकारी योजनाओं से भी मदद मिलेगी। हालांकि, कुछ कर्जों पर नजर रखनी होगी, लेकिन यह एक बार का मामला है।
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Slippage Ratio
0.39%
Flat YoY
Slippage ratio remained low at 0.39% in Q3 FY25, reflecting strong asset quality.
Credit Cost
0.24%
-1bps YoY
Credit cost improved to 0.24% in Q3 FY25, among the best in the industry.
Corporate Loan Pipeline
INR 483,000 Cr
N/A
Pipeline includes INR 222,000 Cr sanctioned and INR 261,000 Cr under process, supporting growth.
YONO Registered Users
8.5 Cr
+64% of SB accounts opened via YONO
Over 8.5 crore customers registered on YONO; 64% of regular SB accounts opened digitally.
What Changed vs Last Quarter
NEW
NIM above 3%
Management guided NIM to remain above 3% going forward, despite rate cut expectations.
NEW
Credit cost of ~50bps through cycles
Credit cost guidance of around 50 basis points through business cycles, reflecting confidence in asset quality.
UPDATED
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.
UPDATED
Deposit growth of ~10% for FY25
Deposit growth guidance revised to ~10% for FY25, with focus on improving CASA mix.
DROPPED
ROA to remain above 1%
Management guides for ROA of at least 1%, with potential upside from non-interest income and cost control.
DROPPED
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.
NEW RISK
Elevated SMA-2 loans
SMA-2 loans increased to INR 7,424 crore from INR 1,840 crore, though management attributed most to one account that has been regularized.
NEW RISK
NIM compression from rate cuts
A shallow rate cut cycle could compress NIM by 2-3bps; deeper cuts may require active liability management.
NEW RISK
Xpress Credit asset quality
Xpress Credit GNPA rose from 0.77% to 1.11% due to slowdown and digital transition; management expects double-digit growth to resume.
RISK GONE
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.
RISK GONE
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.
RISK GONE
Deposit growth lagging credit growth
Deposit growth at 9.13% YoY trails credit growth of 14.93%, potentially constraining future lending if not addressed.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q4 FY24
Slippage ratio expected below 60 bps and credit cost below 40 bps, with PCR at 75.66% providing buffer.
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 reiterated guidance of 14-16% credit growth for FY25, supported by strong corporate pipeline and retail momentum.
SMA-2 loans increased to INR 7,424 crore from INR 1,840 crore, though management attributed most to one account that has been regularized.
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