SBI Q2 profit rises 28% to ₹18,331 cr; to raise ₹20,000 cr via bonds in FY25
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Shares of State Bank of India (SBI) ended 1.86% lower at ₹843.25 on the BSE on Friday after the country’s largest commercial lender released its September quarter earnings report. The board of the PSU bank also approved a proposal for raising long term bonds up ₹20,000 crore through a public issue or private placement, during the current fiscal.
SBI has clocked 28% rise in its standalone net profit at ₹18,331 crore for the second quarter ended September 30, 2024. The PSU lender had posted net profit of ₹14,330 crore in the year-ago period.
During the quarter under review, net interest income (NII) jumped by 5.37% year-over-year to ₹41,620 crore, from ₹39,500 crore in the same period last year. The interest income of the bank surged 12.32% year-on-year (YoY) to ₹1.14 lakh crore, SBI said in an exchange filing.
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The operating profit of the PSU lender surged by 51% YoY to ₹29,294 crore in Q2 FY25, from ₹19,417 crore during the same period last year.
Net interest margins (NIM) of the public sector bank declined by 15 basis points (bps) YoY to 3.14% as compared to 3.29% in the same period last year. Sequentially, the NIMs dropped by 8 bps from 3.22% in a June quarter of the current fiscal. Domestic NIMs slipped to 3.27% in Q2 FY25 from 3.35% in Q1 FY25, and 3.43% in Q2 FY24.
On the asset quality front, SBI saw its gross non-performing asset (NPA) improving to 2.13% as on September 30, 2024, as against 2.21% in the previous quarter and 2.55% in the year ago period. In a similar trend, net NPA ratio dropped to 0.53% against 0.57% in Q1 FY25 and 0.64% as on September 30, 2023.
In absolute terms, the GNPA of the bank stood at ₹83,369 crore as compared to ₹84,226 crore in a quarter ago period and ₹86,974 crore in the corresponding period last year. The net NPA was at ₹ 20,294 crore in Q2FY25 versus ₹21,555 crore in Q1 FY25 and ₹21,352 crore in Q2 FY24.
Provisions of the bank increased to ₹4,506 crore from ₹3,449.4 crore in the June quarter. In the year ago period, provisions stood at ₹115 crore.
During the July-September quarter of FY25, the bank reported a credit growth of 14.93% YoY with domestic advances rising by 15.55% YoY. The capital adequacy ratio (CAR) as at the end of Q2 FY25 stood at 13.76%.
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