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State Bank of India — Q4 FY25
SBI reported FY25 net profit of INR 70,901 crore, up 16.08% YoY, driven by strong credit growth of 12% and stable asset quality with slippage ratio of 0.55%.
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SBI reported FY25 net profit of INR 70,901 crore, up 16.08% YoY, driven by strong credit growth of 12% and stable asset quality with slippage ratio of 0.55%. Domestic advances grew 11.56% led by SME (16.86%) and agriculture (14.29%), while corporate growth was impacted by unexpected prepayments from PSUs. Deposit growth was 9.48% with CASA ratio near 40%. The bank maintained ROA above 1% and ROE above 19%. Management guided for 12-13% credit growth in FY26, NIM protection around 3% despite rate cuts, and cost-to-income below 50-51%. Key risks include margin compression from repo rate cuts and potential impact from the Bhushan Power & Steel Supreme Court judgment.
SBI ने वित्त वर्ष 2025 में 70,901 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछले साल से 16.08% ज़्यादा है। यह मुनाफा कर्ज देने में 12% बढ़ोतरी और कम बुरे कर्ज (सिर्फ 0.55% फिसलन दर) की वजह से हुआ। छोटे और मझोले उद्योगों (SME) को 16.86% और किसानों को 14.29% ज़्यादा कर्ज दिया गया। बैंक की जमा राशि 9.48% बढ़ी और बचत व चालू खाते (CASA) का हिस्सा 40% के करीब रहा। बैंक ने अपनी कमाई पर 1% से ज़्यादा रिटर्न (ROA) और 19% से ज़्यादा इक्विटी पर रिटर्न (ROE) बनाए रखा। आगे बैंक 12-13% कर्ज वृद्धि और ब्याज दरों में कटौती के बावजूद 3% के आसपास मार्जिन बचाने की उम्मीद करता है। मुख्य जोखिम: रेपो दर कटौती से मार्जिन कम होना और भूपावर पावर एंड स्टील मामले में सुप्रीम कोर्ट के फैसले का असर।
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NIM compression from repo rate cuts
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Slippage Ratio
0.55%
Flat YoY
Industry-leading asset quality at scale; slippage ratio remained low at 0.55% for FY25.
Credit Cost
0.38%
Flat YoY
Credit cost stable at 0.38%, reflecting strong underwriting and recovery processes.
CASA Ratio
~40%
-200bps YoY
CASA ratio declined to ~40% as term deposits grew faster than savings deposits.
Corporate Loan Pipeline
INR 3.4 lakh crore
N/A
Strong pipeline of INR 3.4 lakh crore in corporate loans, with INR 1.7 lakh crore sanctioned but undisbursed.
What Changed vs Last Quarter
NEW
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.
NEW
NIM protection around 3%
Despite repo rate cuts, management aims to protect domestic NIM at around 3% through deposit rate adjustments.
NEW
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.
NEW
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.
DROPPED
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.
DROPPED
Deposit growth of ~10% for FY25
Deposit growth guidance revised to ~10% for FY25, with focus on improving CASA mix.
DROPPED
NIM above 3%
Management guided NIM to remain above 3% going forward, despite rate cut expectations.
DROPPED
Credit cost of ~50bps through cycles
Credit cost guidance of around 50 basis points through business cycles, reflecting confidence in asset quality.
NEW RISK
Bhushan Power & Steel Supreme Court judgment impact
Supreme Court ruling on Bhushan Power & Steel could impact recoveries; management is studying the order and potential implications.
NEW RISK
Corporate loan prepayment risk
Unexpected prepayments from PSUs impacted corporate credit growth in Q4; similar deleveraging could recur.
NEW RISK
Elevated provisions in Q4 impacting quarterly profit
Higher provisions (including PLI and aging provisions) led to a 10% YoY decline in Q4 PAT, which may raise concerns about earnings volatility.
RISK GONE
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.
RISK GONE
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
Forex income volatility
Forex income fell sharply due to MTM losses from USD/INR volatility; management termed it transitory but recurring risk remains.
🤫 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 Q3 FY25, Q4 FY24
Deposit growth guidance revised to ~10% for FY25, with focus on improving CASA mix.
Mentioned in Q2 FY25, Q3 FY25
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.
Mentioned in Q1 FY25, Q3 FY24
Management expects net interest margin to stay near current levels, with variation not exceeding 10 bps.
Fast read
Guidance and risk preview
Management expects domestic credit growth of 12-13% in FY26, driven by corporate pipeline and SME/agriculture segments.
Further repo rate cuts could pressure net interest margins, though management expects to mitigate via deposit rate adjustments.
View Risks →