The State Bank of India (SBI), the nation’s largest public sector lender, has reported a historic net profit of ₹70,901 crore for the financial year ending March 31, 2025. This marks a 16.08% increase over the previous fiscal’s ₹61,077 crore, establishing the highest-ever annual profit recorded by an Indian bank. ETBFSI.com
Operational Excellence and Profitability
SBI’s operating profit surged by 17.89% year-on-year, surpassing ₹1.10 lakh crore for the first time. The bank’s net interest income (NII) rose by 4.43% to ₹1.66 lakh crore, reflecting robust core banking performance despite a challenging interest rate environment.
In the fourth quarter (Q4) of FY25, SBI reported a net profit of ₹18,643 crore, a 10% decline from the previous year’s ₹20,698 crore. This dip was attributed to narrowing net interest margins and increased provisioning. Hindustan Herald+3Business-News-Today.com+3ETBFSI.com+3Reuters
Credit Growth and Asset Quality
The bank’s total advances grew by 12.03% year-on-year, reaching ₹42.2 lakh crore. Retail personal loans increased by 11.40% to ₹15.06 lakh crore, with home loans rising 14.46%. SME advances grew by 16.86%, and agricultural loans by 14.29%.
Asset quality improved significantly, with the gross non-performing asset (NPA) ratio declining to 1.82% from 2.24% the previous year, and the net NPA ratio improving to 0.47% from 0.57%. Bajaj Broking+1steelcitynettrade.com+1
Digital Transformation and Operational Efficiency
SBI’s digital initiatives have been pivotal in its performance. Approximately 64% of new savings accounts were opened through its digital platform, YONO. Additionally, 98.2% of total transactions were conducted via alternate channels, underscoring the bank’s commitment to digital banking. The Times of IndiaETBFSI.com+3thekanal.in+3arthasachi.com+3
Capital Adequacy and Shareholder Returns
The bank’s capital adequacy ratio stood at 14.25%, well above regulatory requirements, ensuring financial stability and capacity for future growth. SBI declared a dividend of ₹15.90 per equity share for FY25, reflecting its strong financial position.
Outlook
Looking ahead, SBI aims for loan growth of 12-13% in FY26, maintaining momentum despite global economic uncertainties. The bank plans to raise up to ₹25,000 crore through equity capital to support its growth objectives. Reuters+1Business-News-Today.com+1steelcitynettrade.com+2Onmanorama: Kerala News & Videos+2Reuters+2
SBI’s record-breaking performance in FY25 underscores its leadership in the Indian banking sector, driven by strategic digital transformation, robust credit growth, and prudent risk management.
