SBI Q3 Results: Net Profit Jumps 84% YoY to ₹16,891 Crore; NII Grows by 4%
SBI Q3 Results: State Bank of India (SBI), India’s largest public sector lender, has delivered an impressive performance in the third quarter of FY25 (Q3FY25), reporting an 84.32% year-on-year (YoY) rise in standalone net profit to ₹16,891.44 crore. This remarkable growth is a significant jump from ₹9,163.96 crore recorded in the same quarter last year. However, the net profit showed a sequential decline of 8% compared to the previous quarter.
At 14:32 IST on Thursday, SBI shares traded 1.31% lower at ₹756.10 apiece on the Bombay Stock Exchange (BSE).
Strong Performance Amidst Challenges
SBI’s interest income grew by 10%, reaching ₹1,17,427 crore in Q3FY25, compared to ₹1,06,734 crore in the year-ago period. The bank’s Net Interest Income (NII) also posted a 4% YoY increase, rising to ₹41,446 crore, showcasing steady growth despite rising competition and a challenging economic environment.
Operating profit stood at ₹23,551 crore, reflecting a 15.81% growth YoY. SBI Chairman CS Shetty expressed confidence in the bank’s financial resilience, citing well-provisioned NPAs and robust capital adequacy.
“Our NPA portfolio is well-covered with a provision coverage ratio of 74.6%, and the capital adequacy ratio (CAR) of 13.03% ensures we are well-positioned to meet future growth requirements,” said Shetty.
Stable Asset Quality
SBI maintained strong asset quality during the quarter. The Gross Non-Performing Assets (NPA) ratio improved to 2.07%, down from 2.13% in the September quarter, while the Net NPA ratio remained stable at 0.53%.
The bank’s prudent approach to risk management and provisioning has helped maintain a healthy balance sheet, bolstering investor confidence.
Capital Adequacy and Market Outlook
SBI’s CAR stood at 13.03% at the end of December 2024, comfortably above the regulatory requirement. This demonstrates the bank’s capacity to support business growth while adhering to strict capital norms.
On the stock market front, SBI’s share price opened at ₹769.65 on Thursday, hitting an intraday high of ₹770.95 and a low of ₹750. Technical analysts suggest the stock has immediate resistance around ₹770–780 and support near ₹749. A break below this level could push the price further towards ₹735–730 in the near term.
Key Financial Ratios
Here’s a snapshot of SBI’s key financial metrics for Q3FY25:
| Metric | Value |
|---|---|
| Market Cap | ₹6,71,444 Cr |
| Current Price | ₹752 |
| High / Low | ₹912 / ₹678 |
| Stock P/E | 8.74 |
| Book Value | ₹465 |
| Dividend Yield | 1.84% |
| ROCE | 6.16% |
| ROE | 17.3% |
| Debt to Equity Ratio | 13.5 |
| Industry PE | 8.93 |
| Debt | ₹56,06,147 Cr |
| PEG Ratio | 0.09 |
| Intrinsic Value | ₹604 |
| Graham Number | ₹916 |
| Piotroski Score | 8.00 |
Conclusion
SBI’s stellar Q3FY25 performance reflects its ability to navigate economic uncertainties while delivering value to its stakeholders. With robust growth in net profit, stable asset quality, and a strong capital position, the bank continues to solidify its leadership in India’s banking sector.
Investors should monitor SBI’s future performance as it focuses on sustaining growth momentum and enhancing profitability. Despite short-term market volatility, the bank’s long-term prospects remain promising.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.