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SBI profit jumps 27.92% in September quarter

The bank’s retail and corporate loan demand remains strong, with the sanctioned pipeline for corporate lending at around Rs 6 lakh crore, according to the SBI Chairman.

SBI Chairman CS Setty said the bank aims to be the first firm in the country to achieve a Rs one lakh crore net profit.

Aided by a rise in ‘other income’, State Bank of India, India’s largest commercial bank, has reported a 27.92 per cent rise in net profit at Rs 18,331 crore for the quarter ended September 2024 as against net profit of Rs 14,330 crore in the year-ago period.

Other income rose by 41.52 per cent to Rs 15,527 crore in the second quarter of FY25.

In July-September quarter, interest income of the bank increased 12.32 percent on-year to Rs 1.14 lakh crore. The net interest income of the lender grew 5.37 percent on-year to Rs 41,620 crore in Q2FY25 from Rs 39,500 crore in a year ago period.

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SBI Chairman CS Setty said the bank aims to be the first firm in the country to achieve a Rs one lakh crore net profit. “Our first priority is Rs one lakh crore in operating profit, which we are almost at. The bank has the potential to reach there. The timeline for net profit is something we need to look at,” he said.

SBI shares closed 1.86 per cent lower at Rs 843.25 on the BSE on Friday.

The bank said net interest margins (NIM) declined by 15 basis points on-year and 8 bps on a quarterly basis. NIM stood at 3.14 per cent in the reporting quarter, as compared to 3.22 percent in a quarter ago period and 3.29 per cent in a year ago period.

Domestic NIMs of SBI declined to 3.27 percent in July-September quarter, as compared to 3.35 percent in April-June quarter, and 3.43 percent in July-September quarter FY24, presentation showed.

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The bank’s retail and corporate loan demand remains strong, with the sanctioned pipeline for corporate lending at around Rs 6 lakh crore, Setty said. The bank expects 14-16 per cent loan growth in the current financial year, he said.

Gross non-performing asset (NPA) of the bank declined by 4.14 percent in the second quarter of the current financial year to Rs 83,369 crore from Rs 84,226 crore in a quarter ago period and Rs 86,974 crore in a year ago period.

Total deposits of the bank increased by 9.13 percent on-year to Rs 51.17 lakh crore from Rs 46.89 lakh crore in a year ago period. Of the total deposits, current account deposits of the bank stood at Rs 2.78 lakh crore, which has 10.05 percent on-year in July-September quarter. Saving bank deposit stood at Rs 16.88 lakh crore in Q2FY25, as compared to Rs 16.33 lakh crore in Q2FY24.

Gross advances of the bank grew 14.93 percent on-year to Rs 39.21 lakh crore in second quarter of the current financial year. Domestic corporate loan book increased to Rs 11.57 lakh crore in July-September quarter, as compared to 11.39 lakh crore in April-June quarter, and Rs 9.78 lakh crore.