State Bank of India (SBI) announced on Saturday that its standalone net profit for the April–June quarter of 2024–25 was Rs 17,035 crore. This represents a meager 0.9% gain over the similar amount for the same quarter of the previous year, which was Rs 16,884.3 crore.
According to an SBI statement, the largest lender in the nation’s asset quality exhibited some improvement, with its gross non-performing assets (NPA) ratio of 2.21 percent of total loans as of June 30 compared to 2.76 percent as of June 30, 2023.
As of June 30, the bank’s net non-performing assets (NPA) were 0.57%, compared to 0.71% on June 30, 2023.
Gross non-performing assets (NPAs) decreased from Rs 91,327.84 crore on June 30, 2023, to Rs 84,226.04 crore as of June 30. As of June 30, 2023, the Net NPA was Rs 21,554.69 crore, down from Rs 22,995.37 crore on June 31, 2023.
For Q1FY25, the bad loan slippage ratio decreased by 0.1% to 0.84 percent.
According to the announcement, the public sector bank’s deposits rose 8.18% to Rs 49.02 lakh crore in the first quarter from Rs 45.31 lakh crore in the corresponding period of the previous year.
In the April–June quarter, SBI’s domestic CASA deposits increased by 2.59% year over year to Rs 19.15 lakh crore, while domestic term deposits increased by 12.20% year over year to Rs 27.9 lakh crore. The amount of money deposited into bank customers’ current and savings accounts is known as the CASA deposit. It is the primary and least expensive source of funding for banks.
As of June 30, 2024, the public sector bank’s CASA ratio was 40.70 percent, a steep decline of 2.18 percent year over year from 42.88 percent as of June 30, 2023. As a result, it must rely more on term deposits, which are more expensive to raise money since the bank must pay a higher interest rate. This in turn affects the bank’s profitability.
SBI’s gross advances for the April–June quarter increased by 15.39% year over year to Rs 38.12 lakh crore. According to a press release, SME Advances (19.87 percent on-year) and Agri Advances (17.06 percent on-year) are the main drivers of Domestic Advances growth.
In the June quarter, domestic corporate advances increased to Rs 11.39 lakh crore from Rs 11.38 lakh crore in the previous quarter and Rs 9,82 lakh crore in the previous year.
To reach Rs 13.68 lakh crore, domestic retail personal advances increased by 13.60 percent year over year.
