The State Bank of India (SBI) revealed an 84% year-on-year (YoY) jump in standalone net profit to ₹16,891 crore for the October-December 2024 quarter, surpassing Bloomberg’s estimate of ₹16,504 crore. However, the results drew mixed reactions, as the prior-year quarter included a one-time provision of ₹7,100 crore for employee-related liabilities. Adjusting for this exceptional item, the profit growth moderated to 3.85% compared to the same period last year.
Financial Performance Highlights
Net Interest Income (NII): Rose 4% YoY to ₹41,446 crore, though net interest margin (NIM) contracted by 19 basis points to 3.15%, attributed to shifting savings deposits to higher-cost term accounts.
Deposits and Advances: Total deposits climbed 10% YoY to ₹52.3 lakh crore, driven by a 13.47% surge in domestic term deposits (₹30.49 lakh crore). Gross advances expanded 13.5% to ₹40.68 lakh crore, with corporate loans rising 14.8% and retail loans up 11.7%.
Asset Quality: Gross non-performing assets (GNPA) improved to 2.07% (vs. 2.13% in the prior quarter), while slippages dropped to ₹3,823 crore from ₹4,960 crore YoY.
Operational Insights: Chairman C.S. Setty highlighted stabilized deposit costs and projected steady NIMs, targeting 10% deposit growth and 14-16% loan growth for FY25. Despite a 1.58% dip in share price post-results, the bank emphasized robust performance across metrics.
CASA Dynamics: Domestic current and savings account (CASA) deposits edged up 4.46% YoY to ₹19.65 lakh crore, though the CASA ratio fell to 39.20% due to faster term deposit growth. The bank’s focus on balancing credit expansion with asset quality and cost management underscores its strategy amid evolving deposit trends.
