SBI Q4 FY25: Net Profit Drops 10% to ₹18,643 Cr, Loan Surge Continues
India’s largest state lender State Bank of India (SBI) posted a 10% YoY drop in its net profit for the fourth quarter of FY 25 at Rs 18,642.59 crore, compared to a net profit of Rs 20,698.35 crore reported in the year-ago period. Meanwhile, the net interest income (NII) grew 2.7% YoY to Rs 42,774.55 crore
SBI Q4 FY25 Key Highlights :
| SBI Q4 FY25 Key Highlights | |
|---|---|
| Net Profit | ₹18,643 crore (down 10% from last year) |
| Net Interest Income (NII) | ₹42,775 crore (up 3% from last year) |
| Gross NPA (Bad Loans) | 1.82% (improved from 2.07% last quarter) |
| Net NPA | 0.47% (improved from 0.53% last quarter) |
| Loans Given Out | ₹41.65 lakh crore (up 12% from last year) |
| Deposits | ₹53.86 lakh crore (up 10% from last year) |
| Profit Margin (NIM) | 2.98% (down slightly from 3.30% last year) |
| Dividend per Share | ₹13.70 (same as last year) |
Mumbai, May 3, 2025 – State Bank of India (SBI), India’s biggest bank, shared its financial results for January-March 2025 (Q4 FY25). The bank earned a net profit of ₹18,643 crore, which is 10% less than the ₹20,698 crore it made in the same period last year. Despite the drop, SBI showed strength by growing its loans and improving the quality of its lending, even as it faced challenges like higher costs and tighter profits. Announced on May 3, 2025, these results highlight SBI’s ability to stay steady in a tough banking environment.
Why Did Profit Drop?
SBI’s profit fell mainly because it had to set aside more money, called provisions, to cover things like employee wage hikes and potential loan losses. These provisions were around ₹2,600-3,000 crore, higher than last quarter’s ₹2,305 crore. The bank also earned less from investments, which added to the profit decline. However, this was expected, as experts predicted profits could drop by 4-22% due to these costs.
Strong Loan and Deposit Growth
SBI continued to lend more money, with total loans reaching ₹41.65 lakh crore, a 12% jump from last year. This growth came from personal loans (like home and car loans), business loans, and small enterprise lending. The bank has a pipeline of ₹6.3 lakh crore in new loans, signaling strong growth ahead, possibly 14-15% in the next year.
Deposits, the money customers keep with SBI, grew by 10% to ₹53.86 lakh crore. However, fewer people kept money in low-cost savings accounts (down to 39% from 41% last year), as many chose term deposits for better interest rates. This shift made it costlier for SBI to fund its loans.
Better Loan Quality
SBI improved its loan quality significantly. The percentage of bad loans (gross NPA) dropped to 1.82% from 2.07% last quarter, meaning fewer loans are at risk of not being repaid. The net NPA, which tracks bad loans after provisions, fell to 0.47% from 0.53%. This shows SBI is doing a great job managing risky loans, with bad loans worth ₹76,880 crore, down from ₹84,360 crore last quarter.
Income and Profit Margins
The bank’s main income from lending, called net interest income (NII), rose 3% to ₹42,775 crore, up from ₹41,620 crore last year. This growth shows SBI is earning more from its loans. However, the profit margin (net interest margin or NIM) slipped to 2.98% from 3.30% last year because it cost more to attract deposits and competition made lending rates tighter.
Dividend for Shareholders
SBI will pay a dividend of ₹13.70 per share, the same as last year, showing it values its investors. Shareholders who own stock by May 22, 2025, will receive this payment on June 5, 2025.
What’s Next for SBI?
SBI’s stock rose 7.8% to ₹850 on the NSE after the results, reflecting investor confidence in its growth. The bank’s leader, Chairman C.S. Setty, said SBI aims to hit ₹1 trillion in operating profit in the future, driven by digital tools like the YONO app, which helped open 64% of new savings accounts. With a strong capital base (13.76% capital adequacy ratio), SBI doesn’t need to raise new funds soon and can grow using its profits.
Looking ahead, SBI plans to focus on keeping profit margins stable, growing deposits, and carefully lending in areas like personal loans and small businesses. Experts are optimistic but will watch how SBI handles deposit costs and competition.
Why This Matters
SBI’s results reflect trends across Indian banks, where rising deposit costs and wage hikes are squeezing profits. Yet, SBI’s ability to grow loans faster than the industry and reduce bad loans sets it apart. As India’s largest bank, serving millions of customers, its performance impacts the economy and signals banking sector health.
Conclusion
SBI’s Q4 FY25 results show it’s navigating challenges with strength, growing loans, improving loan quality, and rewarding shareholders. While profits dipped due to higher costs, the bank’s solid foundation and digital push position it well for the future. Investors and customers can stay updated via SBI’s official website or social media channels.
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External Source
For official financial details, visit the State Bank of India Investor Relations website: SBI Investor Relations.
Copyright and Disclaimers
© 2025 State Bank of India. All rights reserved. The information in this article about SBI’s Q4 FY25 results, including financial figures and operational details, is based on official filings, press releases, and trusted media sources. Financial data, such as profit, NII, and NPAs, may vary slightly in final reports due to audits or rounding. Actual results can differ based on market conditions or operational changes. For the most accurate information, check SBI’s official website (www.sbiCONFIGURE).
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