Shares of State Bank of India (SBI) tumbled as much as 2.25 per cent in early trade on May 5 after the public lender reported its fourth quarterly results for the fiscal year 2025 (Q4 FY25). SBI shares ended at Rs 790.60 per share on the NSE, down 1.17 per cent from previous close. During the session, the stock had slipped to an intraday low of Rs 782.
From March lows, SBI shares have recouped over 16 per cent. Earlier, on June 3, 2024, they had touched their all-time high of Rs 912. From this level, the bank stock still need to gain around 13.5 per cent to scale a new record high.
SBI Q4 FY25 Results
SBI reported a net profit of Rs 18,642.59 crore for the March quarter, a 10 per cent decline year-on-year (YoY) from Rs 20,698.35 crore in the year-ago quarter. Its net interest income (NII) came in at Rs 42,774.55 crore, up 2.7 per cent YoY.
For the quarter, the bank's net interest margin (NIM) of the whole bank shrunk by 30 basis points (bps) to 3 per cent as against 3.30 per cent in the year-ago quarter.
The bank reported a gross NPA ratio of 1.82 per cent, down by 42 bps YoY from 2.24 per cent in the previous year's quarter. Its net NPA ratio came in at 0.47 per cent, down by 10 bps YoY from 0.57 per cent. Its provision coverage ratio (PCR) decreased by 60 bps YoY to 74.42 per cent from 75.02 per cent, and slippage ratio declined by seven bps YoY to 0.55 per cent from 0.62 per cent.
Credit costs came in at 0.38 per cent, an improvement of 9 bps YoY from 0.29 per cent. Capital Adequacy, however, declined by 3 bps YoY to 14.25 per cent.
For the full year FY25, gross advances grew 12.03 per cent YoY to Rs 42,20,703 crore, up from Rs 37,67,535 crore from FY24. Total deposits increased by 9.48 per cent to Rs 53,82,190 crore from previous year's Rs 49,16,077 crore.
The current account and savings account (CASA) deposits for the quarter under review increased by 6.34 per cent to Rs 20,65,161 crore, up from Rs 19,41,996 crore in the year-ago quarter.
SBI FY26 Guidance, Dividend, Fundraise
For FY26, SBI guided for loan growth of 12–13 per cent. The bank expects some pressure on NIM, and expects stable asset quality.
The bank's board also approved a plan to raise Rs 25,000 crore in FY26 in one or more tranches. The bank also announced a dividend of Rs 15.90 apiece for FY25. The record date for the same has been fixed at May 16, 2025, and the payment date at May 30, 2025.
Brokerages Mixed On SBI's Q4 Performance
Elara Capital said, "SBI delivered yet another steady print amidst uncertainty, demonstrating strong earnings resilience, much better than peers." It added that its Q4 profit was ahead of estimates on higher other income and better recovery. The brokerage firm also said that the bank's NII growth was better than even some private banks, supported by steady NIMs.
HDFC Securities said that SBI's earnings missed their estimates on account of elevated operating expenses towards performance-linked incentives. It added, "We believe SBI is better-placed than large private banks, given surplus liquidity on the balance sheet, relatively lower drag from the repo-linked book, and large investment book (favourable in declining rate cycle)."
According to Nuvama Institutional Equities, SBI's loan growth of 4 per cent QoQ and 12 per cent YoY was the highest among peers on a quarterly basis. However, the yearly growth slowed compared to Q3 due to prepayments by public sector undertakings (PSUs).
