SBI Achieves Major Business Milestone
- The country's largest public sector bank, State Bank of India, crossed ₹100 lakh crore in total business. With this feat, SBI has emerged as the 43rd largest bank in the world by asset size. The chairman, Challa Srinivasulu Shetty, announced these details while sharing results for the September quarter.
- SBI has enhanced its loan growth target for FY 2025-26 to 12-14% from 11% considering the recent changes relating to the rationalization of GST rates and revised income tax slabs, coupled with RBI's regulatory relaxations. Shetty opined that strong loan demand recovery was ensured with the rate cut in GST. He added that the bank would maintain its NIM at 3% for the current fiscal year.
- Shetty also added that the impact of U.S. tariffs will be clearer in the next quarter. Presently, SBI is operating 23,050 branches and is planning to open another 500 branches during FY 2025-26
September Quarter Profit Touches ₹20,160 Crore
- SBI said its consolidated net profit rose 6.84% to ₹21,137 crore for the three months to September from ₹19,743 crore in the same period of FY 2024-25. It was aided by a gain of ₹4,593 crore from the sale of its stake in Yes Bank.
- Total income for the quarter increased from ₹1,63,802 crore to ₹1,75,898 crore. On a standalone basis, the bank’s net profit was up 10% at ₹20,160 crore from ₹18,331 crore. Total standalone income rose from ₹1,29,141 crore to ₹1,34,979 crore. Of this, interest income rose from ₹1,13,871 crore to ₹1,19,654 crore.
- The loan portfolio of SBI grew 12.73% while core net interest income rose 3.28% to ₹42,984 crore. For the quarter, NIM stood at 2.97%.
Improvement in Asset Quality
Gross NPA for SBI decreased from 2.13% to 1.73%, while net NPA declined from 0.53% to 0.42%. Total provisions increased from ₹ 4,505 crore to ₹ 5,400 crore, led by the conservative risk management approach of the bank.
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