About the company:
State Bank of India (SBI) is India’s largest public sector bank and one of the world’s leading financial institutions. Founded in 1955, SBI operates an extensive network of over 22,000 branches and 65,000 ATMs across India and has a strong international presence in 30+ countries. It offers a wide range of financial services, including retail banking, corporate banking, wealth management, loans, digital banking, and investment services. With a significant market share in deposits and advances, SBI plays a crucial role in India’s economic growth. It is also at the forefront of digital banking innovations through platforms like YONO and continues to expand its global footprint.
Key Business Highlights
✅ Strong Loan Growth:
SME, Corporate, and Agri loans driving double-digit growth
Retail Loan Growth: Led by home loans (₹8 trillion portfolio, 14-15% growth)
Auto loans grew 10% YoY, maintaining market leadership
Personal loans expected to recover in Q4 after process improvements
✅ Stable Asset Quality:
Slippage Ratio: 0.39%, Retail Slippage at 0.32%
Credit costs remain low at 0.24%
SMA-2 accounts increased but attributed to a single large account, which has been regularized
✅ Deposits & Liquidity:
CASA growth at 4.46% YoY, Current Account deposits up 14.22%
Shift in savings to term deposits impacting CASA ratio
Strong deposit pipeline; SBI targeting 10% deposit growth for FY25
✅ Technology & Digital Banking:
YONO active users: 8.5 crore (64% of savings accounts opened via YONO)
Launched AI-driven Ask SBI for better customer service & automation
Focus on hyper-personalization, gamification & fintech partnerships
✅ Subsidiary Performance & International Business:
SBI Life, SBI Caps, and SBI General delivering strong growth
International loan book: ₹6 trillion, contributing 15% of advances
Trade finance & supply chain financing remain key international growth areas
Growth & Future Outlook
📌 Loan Growth Target: 14-16% credit growth for FY25
📌 Deposit Growth Target: Revised to ~10%, focus on CASA improvement
📌 Technology & AI: Expansion of AI-based banking solutions and fintech integrations
📌 SME & MSME Focus: Leverage budget incentives and cash flow-based lending models
SBI Financial Performance – Last 3 Quarters (FY25)
| Financial Metric | Q3 FY25 | Q2 FY25 | Q1 FY25 |
|---|---|---|---|
| Net Profit | ₹16,891 crores | ₹14,330 crores | ₹16,884 crores |
| Total Deposits | ₹52.29 lakh crores | ₹50.95 lakh crores | ₹50.36 lakh crores |
| Total Advances | ₹40.68 lakh crores | ₹39.54 lakh crores | ₹38.79 lakh crores |
| Net Interest Income (NII) | ₹40,221 crores | ₹39,500 crores | ₹38,893 crores |
| Net Interest Margin (NIM) | 3.10% | 3.15% | 3.20% |
| CASA Ratio | 39.2% | 39.6% | 40.1% |
| Gross NPA Ratio | 1.32% | 1.34% | 1.38% |
| Net NPA Ratio | 0.53% | 0.55% | 0.58% |
| Slippage Ratio | 0.39% | 0.42% | 0.40% |
| Credit Cost | 0.24% | 0.25% | 0.26% |
| Capital Adequacy Ratio (CAR) | 13.03% | 13.10% | 13.15% |
Recent updates:
Highlights from last con call:
Financial Performance
Net Profit: ₹16,891 crores (up 84% YoY)
Total Deposits: ₹52.29 lakh crores (up 9.81% YoY)
Domestic Credit Growth: 14.06% YoY, led by SME (18%), Agri (15%), Corporate (15%), and Retail (11.6%)
Net NPA Ratio: 0.53% (improved by 11 bps YoY)
Provision Coverage Ratio (PCR): 74.66%
Credit Cost: 0.24% (among the lowest in the industry)
Net Interest Margin (NIM): Above 3% guidance maintained
Capital Adequacy Ratio (CAR): 13.03% (14.50% including profits)
ROA & ROE: >1% and >20%, respectively