SBI Q2 FY25: Public Sector Bank's Net Profit Zooms 28%; Total Deposits Cross ₹51 Lakh Crore

The bank's core income, or Net Interest Income (NII), increased by 5.4 per cent annually to Rs 41,620 crore. Additionally, the period's net profit rose by 28 per cent to Rs 18,331.4 crore from the corresponding quarter of the previous financial year.

Gross and net NPA

SBI's asset quality increased one after the other. The quarter's gross non-performing asset (NPA) was 2.13 per cent, down from 2.21 per cent in June, and the net non-performing asset (NPA) was 0.53 per cent, down from 0.57 per cent in the prior quarters.

In absolute terms, Net NPA increased to Rs 20,294 crore from Rs 21,555 crore during the June quarter, while Gross NPA was Rs 83,369 crore from Rs 84,226 crore in June.

Net interest margin

However, in Q2 FY25, the lender's net interest margin (NIM) decreased by 8 bps Q-o-Q and 16 bps Y-o-y to 3.27 per cent. In Q2 of FY24, NIM was 3.43 per cent; in Q1 of FY25, it was 3.35 per cent.

Provisions and contigency buffer

In Q2 FY25, SBI's total provisions and contingency buffer (net of write-off) was Rs 4,505.7 crore, up from Rs 3,449.4 crore set aside in Q1 FY25 and Rs 115.28 crore in the same quarter of the previous fiscal year.

Compared to the June quarter's Rs 3,449.4 crore figure, the quarter's provisions totalled Rs 4,506 crore. During the same quarter last year, provisions totalled Rs 115 crore when compared year over year.

Gross slippages and recovery

Gross slippages for the quarter decreased to Rs 4,951 crore from Rs 8,707 crore in the June quarter, while loan growth for India's largest lender was 15 per cent year over year.

Additionally, recovery and upgrades saw a sequential drop from Rs 3,666 crore in June to Rs 2,600 crore. As of the end of Q2FY25, the capital adequacy ratio (CAR) is 13.76 per cent.