India’s largest public sector lender, State Bank of India (SBI), reported a 10% year-on-year (YoY) drop in net profit for the fourth quarter of FY25. The bank posted a net profit of Rs 18,642.59 crore, compared to Rs 20,698.35 crore in the same period last year.
Despite the decline in profit, the bank’s Net Interest Income (NII) rose 2.7% YoY to Rs 42,774.55 crore.
However, the Net Interest Margin (NIM) for the domestic book dropped by 32 basis points YoY, settling at 3.15%, compared to 3.47% in Q4FY24.
On the operational side, SBI reported an operating profit of Rs 31,286 crore in Q4FY25, marking an 8.83% increase over Rs 28,748 crore in the year-ago quarter. Meanwhile, loan loss provisions rose 20.35% YoY, reaching Rs 3,964 crore, up from Rs 3,294 crore in Q4FY24.
In terms of asset quality, SBI showed improvement. The gross NPA ratio declined to 1.82%, down 42 basis points YoY, while the net NPA ratio improved by 10 basis points to 0.47%. The provision coverage ratio stood at 74.42%, reflecting a 60 basis point improvement YoY.
The bank’s slippage ratio for FY25 came in at 0.55%, improving by 7 basis points YoY, while the Q4FY25 slippage ratio was 0.42%, a 1 basis point improvement YoY.
SBI’s credit cost for FY25 stood at 0.38%, and the capital adequacy ratio as of March-end 2025 was reported at 14.25%.
The bank has also announced plans to raise equity capital of up to Rs 25,000 crore during FY26. This may be carried out through Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), or other approved methods like rights issues or preferential allotments, in one or more tranches.
Additionally, SBI has declared a dividend of Rs 15.90 per share along with the quarterly results.