SBI's Financial Performance in Q4FY25

India’s largest public sector lender, State Bank of India (SBI), has reported a 10% year-on-year (YoY) drop in net profit for the fourth quarter of FY25. The bank posted a net profit of Rs 18,642.59 crore, compared to Rs 20,698.35 crore in the same period last year.

Key Financial Highlights

Despite the decline in profit, the bank's Net Interest Income (NII) rose 2.7% YoY to Rs 42,774.55 crore. However, the Net Interest Margin (NIM) for the domestic book dropped by 32 basis points YoY, settling at 3.15%, compared to 3.47% in Q4FY24.

Operational Performance and Asset Quality

SBI reported an operating profit of Rs 31,286 crore in Q4FY25, marking an 8.83% increase over Rs 28,748 crore in the year-ago quarter. Meanwhile, loan loss provisions rose 20.35% YoY, reaching Rs 3,964 crore, up from Rs 3,294 crore in Q4FY24.

In terms of asset quality, SBI showed improvement. The gross NPA ratio declined to 1.82%, down 42 basis points YoY, while the net NPA ratio improved by 10 basis points to 0.47%.

Future Plans and Dividend Declaration

The bank has announced plans to raise equity capital of up to Rs 25,000 crore during FY26. Additionally, SBI has declared a dividend of Rs 15.90 per share along with the quarterly results.