State Bank of India (SBI), the country’s largest public sector bank, has delivered a robust performance in Q4FY25 and the full financial year, cementing its leadership position in India’s banking sector. With strong growth across key financial metrics, consistent asset quality improvement, and growing digital penetration, SBI’s results reflect a well-balanced and resilient business model that continues to perform amid dynamic economic conditions.
For FY25, SBI posted a net profit of ₹70,901 crore, a 16.08% increase over the previous year. The net profit for Q4FY25 came in at ₹18,643 crore, showing a sequential growth of 10.37% despite being 9.93% lower year-on-year, largely due to a rise in provisions. The real highlight, however, was SBI’s operating profit, which surpassed the ₹1 lakh crore milestone for the first time. Operating profit for FY25 stood at ₹1,10,579 crore, up 17.89% year-on-year, while Q4FY25 operating profit came in at ₹31,286 crore, registering an 8.83% annual growth and a significant 32.84% rise quarter-on-quarter.
Net Interest Income (NII) for FY25 grew by 4.43% year-on-year to ₹1,66,965 crore. In Q4FY25, NII stood at ₹42,775 crore, reflecting modest growth of 2.69% year-on-year and 3.21% sequentially. However, Net Interest Margins (NIMs) remained under pressure. The whole bank NIM for FY25 stood at 3.09%, while domestic NIM stood at 3.22%, both lower than the previous year. For Q4FY25, whole bank and domestic NIMs were 3.00% and 3.15% respectively, indicating a marginal compression driven by higher deposit costs in a tight liquidity environment.
The bank’s balance sheet continues to expand steadily. Gross advances grew by 12.03% year-on-year to ₹42.2 lakh crore, with domestic advances growing at 11.56%. Within this, SME loans were a standout performer, growing by 16.86% year-on-year to cross ₹5 lakh crore. Agricultural advances grew by 14.29%, and retail personal loans rose by 11.40%. Home loans, the largest segment under retail, rose by 14.46% year-on-year to ₹8.30 lakh crore. Corporate loans also showed steady growth, rising by 9.00% year-on-year, while advances from foreign offices grew by 14.84%.
On the liabilities side, deposits rose by 9.48% year-on-year to ₹53.82 lakh crore. CASA deposits grew by 6.34%, reaching ₹20.65 lakh crore, while domestic term deposits grew at a faster pace of 11.48%, standing at ₹31.01 lakh crore. The CASA ratio as of March 31, 2025, was 39.97%, slightly lower than the 41.11% recorded a year ago, but the rise in term deposits helped balance the funding mix.
Asset quality remains one of SBI’s strongest achievements this fiscal. The Gross NPA (GNPA) ratio improved significantly to 1.82%, a decline of 42 basis points from FY24. The Net NPA (NNPA) ratio also improved by 10 basis points year-on-year to 0.47%. These are among the lowest levels seen in more than a decade for SBI. The slippage ratio for FY25 was 0.55%, improved from 0.62% in FY24, while for Q4FY25, the slippage ratio stood at 0.42%. SBI also strengthened its provisioning buffers, with the Provision Coverage Ratio (PCR) including AUCA rising to 92.08% and credit cost for FY25 maintained at a low 0.38%.
Capital adequacy remains robust. As of March 2025, the Capital Adequacy Ratio (CAR) stood at 14.25%. CET-1 improved to 10.81%, while Tier-1 capital ratio was 12.11%. These figures demonstrate that SBI is well-capitalized and has adequate headroom to support credit growth without the need for immediate capital raising.
From a technological and customer reach standpoint, SBI continues to push forward with digital transformation. Over 64% of new savings bank accounts were opened digitally through the YONO platform in FY25. Moreover, the share of alternate channels in total transactions increased further from 97.8% in FY24 to 98.2% in FY25. This growing digital footprint not only enhances customer convenience but also reduces transaction costs, aiding long-term operating efficiency.
Looking deeper into the quarterly movement, SBI saw a rise in both interest income and interest expense in Q4FY25. Interest income stood at ₹1,19,666 crore, up 7.77% year-on-year, while interest expenses grew at a faster pace of 10.81% to ₹76,892 crore. This reflects the tightening interest rate environment where funding costs are rising faster than yields. However, SBI’s sheer scale and diversified portfolio allow it to manage the margin compression effectively.
Overall, SBI’s performance in Q4FY25 and FY25 showcases a consistent and disciplined approach toward growth, profitability, and risk management. The bank continues to grow its loan book across segments while maintaining strong asset quality, keeping operating costs under control, and investing in technology to future-proof its operations. These strengths make SBI not only a systemic pillar of India’s financial sector but also a compelling long-term play for investors.
SBI’s ability to maintain sub-2% GNPA and sub-0.5% NNPA while expanding its credit book by double digits underscores the structural improvements in underwriting standards and monitoring frameworks. The bank’s strong ROE of 19.87% — on a base of nearly ₹5 lakh crore in equity — demonstrates superior capital efficiency, especially for a public sector institution.
In conclusion, SBI’s Q4FY25 results are a reflection of a mature, forward-looking institution that is successfully navigating both macroeconomic cycles and competitive pressures. With its strong financial metrics, improving asset quality, capital adequacy, and digital scale, SBI is well-positioned to continue leading India’s banking evolution over the next decade.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult with their financial advisor before making any investment decisions. The analysis is based on publicly available information as of the time of writing.
Reference: SBI Q4FY25 Press Release – Official Document
