Mumbai, May 03, 2025: State Bank of India (SBI) announced its financial results for the fourth quarter of fiscal year 2025 (Q4FY25), revealing several concerning trends. The bank’s net profit declined by 9.93% year-on-year (YoY) to ₹18,643 crore, down from ₹20,698 crore in the same quarter last year (Q4FY24).
Loan loss provisions surged significantly, rising 20.35% YoY to ₹3,964 crore in Q4FY25 from ₹3,294 crore in Q4FY24, with a quarter-on-quarter (QoQ) increase of 71.98%. Additionally, the domestic Net Interest Margin (NIM) dropped by 32 basis points (bps) to 3.15% in Q4FY25 from 3.47% in Q4FY24. For the full year, domestic NIM stood at 3.22%, down 21 bps from 3.43% in FY24.
The CASA ratio also weakened, falling to 39.97% in March 2025 from 41.11% in March 2024, a decline of 114 bps. Credit costs rose to 0.38% in FY25, up 9 bps from 0.29% in FY24, with Q4FY25 recording 0.39% compared to 0.37% in Q4FY24, a 2 bps increase. The Provision Coverage Ratio (PCR), excluding AUCA, fell to 74.42% in Q4FY25, down 60 bps from 75.02% in Q4FY24.
Despite improvements in gross NPA ratio by 42 bps and net NPA ratio by 10 bps, alongside growth in advances and deposits, the declines in net profit and NIM remain significant concerns for investors. The bank’s management has pledged to take proactive steps to address these challenges.
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