Core Insights - State Bank of India (SBI) reported a 10% increase in standalone net profit for the quarter ended September 2025, reaching Rs 20,160 crore, up from Rs 18,331 crore a year earlier, primarily driven by a significant rise in non-interest income [4][6] Financial Performance - Non-interest income surged by 30.4% year-on-year to Rs 19,919 crore, bolstered by a one-time gain of Rs 4,593 crore from the partial sale of its Yes Bank stake [4][6] - Operating profit increased by 8.9% to Rs 31,904 crore, indicating strong core performance despite rising funding costs [4][6] - Net interest income rose by 3.3% to Rs 42,984 crore, supported by a 12.7% increase in total advances to Rs 44.2 lakh crore [4][6] - Domestic net interest margin decreased by 18 basis points to 3.09% from 3.27% in the same quarter last year due to rising deposit costs [4][6] Lending and Deposits - Retail, agriculture, and MSME lending were the main growth drivers, with SME loans increasing by 18.8% and retail personal advances by 14.1% [4][6] - Total deposits grew by 9.3% year-on-year to Rs 55.9 lakh crore, aided by a 17.9% rise in current account balances [4][6] Asset Quality - The bank's asset quality improved, with the Gross NPA ratio falling by 40 basis points to 1.73% and the Net NPA ratio reducing to a low of 0.42%, marking the best asset quality in two decades [5][6] Future Outlook - The bank's chairman, CS Setty, indicated that banking reforms as part of the monetary policy are expected to enhance credit growth by one percentage point, leading to a revised credit growth target from 11% to 12-14% [5][6] - There is a strong corporate credit pipeline of Rs 7 lakh crore, although some repayments have occurred from companies with available cash or raised equity [5][6]
SBI net profit rises 10% to Rs 20,160 crore; total business crossed Rs 100 lakh cr
The Times Of India·2025-11-04 09:49