SBI Q3FY25 Results: Net profit soars 84% YoY to Rs 16,891 crore, NII grows 4%

State Bank of India (SBI) reported a stellar 84 per cent year-on-year (YoY) jump in standalone net profit, reaching Rs 16,891 crore for Q3FY25, significantly higher than the Rs 9,163 crore reported in the same quarter last year. The profit also outperformed Street estimates of Rs 16,219 crore. However, on a sequential basis, the profit declined by 8 per cent from Rs 18,331 crore in Q2FY25.

Interest income and NII reflect steady growth

SBI’s net interest income (NII) for the quarter stood at Rs 41,620 crore, registering a modest 4.09 per cent YoY growth from Rs 39,816 crore. Meanwhile, interest income rose 10% YoY to Rs 1,17,427 crore, reflecting continued business expansion. Despite this, SBI’s net interest margin (NIM) contracted by 19 basis points (bps) YoY and 12 bps quarter-on-quarter (QoQ) to 3.15 per cent, indicating some pressure on margins.

Operating profit sees double-digit growth

SBI’s operating profit surged 15.81 per cent YoY, reaching Rs 23,551 crore in Q3FY25. While growth in key lending segments contributed to the rise, an increase in interest expenses also played a role in moderating gains.

Loan book expands, SME and agri lending lead growth

The bank posted a 13.49 per cent YoY credit growth, with domestic advances rising 14.06 per cent. Notably, gross advances surpassed Rs 40 lakh crore. Key lending segments performed as follows:

• SME loans: Up 18.71 per cent YoY
• Agriculture advances: Increased 15.31 per cent YoY
• Corporate loans: Grew 14.86 per cent YoY
• Retail personal loans: Up 11.65 per cent YoY
• Foreign office advances: Expanded 10.35 per cent YoY

Interest expenses jump, impacting margins

The bank paid Rs 75,981 crore in interest expenses, a 13 per cent increase QoQ compared to Rs 66,918 crore in Q2FY25. This rise in costs contributed to the slight decline in profitability on a quarter-on-quarter basis.

Stock reaction and market outlook

Despite robust earnings, SBI shares traded 0.55 per cent lower at Rs 761.85 on the BSE around 2:20 PM, reflecting investor caution amid global market trends. The bank's performance remains strong, but analysts will watch margin trends closely in upcoming quarters.