State Bank of India (SBI) has reported a significant increase in its net profits in the July-September quarter, with profit after tax rising by 27.92 per cent to Rs 18,331 crore. When combined with the April-June quarter, the lender’s net profit saw a growth of 13.30 per cent to Rs 36,367 crore. SBI’s net interest income also rose by 5.37 per cent to Rs 41,620 crore in the September quarter, and by 5.54 per cent to Rs 82,745 crore when both quarters are taken into account.
The credit growth of SBI has seen a positive trend, with a 14.93 per cent year-on-year increase to Rs 39.21 lakh crore, and domestic advances showing a growth of 15.55 per cent year-on-year. The SME and retail personal advances loans also registered significant growth rates of 17.36 per cent and 12.32 per cent, respectively. SBI’s gross NPA ratio stood at 2.13 per cent in the September quarter, showing an improvement of 42 basis points year-on-year.
The bank highlighted that the Profit per Employee and Business per Employee have shown a continuous increase, indicating improved productivity. The total number of employees at SBI stood at 2.34 lakhs, with an attrition rate of 0.38 per cent reported during H1-2024-25. Despite these positive results, at the time of filing the report, shares of SBI were trading at 837.45 points, representing a decrease of 2.58 per cent.
In conclusion, SBI’s financial performance in the recent quarters has been robust, with significant increases in net profits and net interest income. The bank has also seen positive trends in credit growth, with strong growth rates in domestic advances, SME, and retail personal loans. The improvement in the gross NPA ratio further reflects the bank’s efforts in managing its asset quality. Additionally, the increase in productivity indicators such as Profit per Employee and Business per Employee demonstrate the bank’s focus on operational efficiency and performance. While the stock market response has seen a slight decline in shares, the overall financial health of SBI appears to be strong and poised for continued growth.
