The State Bank of India (SBI), the nation’s largest public sector lender, has made headlines with its stellar financial performance for the third quarter (Q3) of the fiscal year 2025. Reporting an impressive 84% year-on-year (YoY) growth in standalone net profit, SBI’s latest results have surpassed market expectations, showcasing the bank’s robust financial health and strategic growth trajectory.
In this comprehensive analysis, we break down the key aspects of SBI Q3 Results 2025, including net profit, net interest income (NII), credit growth, and other essential metrics. Read on for a deep dive into the factors contributing to the bank’s remarkable performance.
What Is the Standalone Net Profit for SBI Q3 2025?
SBI recorded a standalone net profit of Rs 16,891 crore, marking a significant 84% increase compared to Rs 9,163 crore in the corresponding quarter of the previous year. This impressive figure exceeded analysts’ expectations of Rs 16,219 crore, cementing SBI’s position as a market leader.
Key Drivers of Profit Growth:
- Increased interest income.
- Strategic cost management.
- Strong credit growth across sectors.
How Did SBI’s Net Interest Income (NII) Perform?
The bank’s Net Interest Income (NII) for Q3FY25 rose by 4.09% YoY, reaching Rs 41,620 crore, up from Rs 39,816 crore in the same period last year.
Factors Contributing to NII Growth:
- Higher loan disbursements.
- Better asset-liability management.
However, despite the growth in NII, SBI faced some challenges with its Net Interest Margin (NIM), which contracted by 19 basis points (bps) YoY and 12 bps QoQ to 3.15%.
What About Operating Profit and Interest Income?
SBI’s operating profit for the quarter stood at Rs 23,551 crore, representing a 15.81% YoY increase.
Additionally, the bank’s interest income for Q3FY25 amounted to Rs 1,17,427 crore, up by 10% YoY from Rs 1,06,734 crore in the same quarter of the previous fiscal year.
Sequential Decline in Profit After Tax (PAT)
While the YoY growth was impressive, there was an 8% sequential decline in PAT compared to Rs 18,331 crore reported in Q2FY25.
How Did the Market React to SBI Q3 Results 2025?
The announcement of the earnings during market hours had a muted impact on the bank’s stock. At around 2:20 PM, SBI shares were trading 0.55% lower at Rs 761.85 on the BSE.
SBI’s Interest Payments Surge in Q3FY25
The bank reported a substantial increase in interest payments, amounting to Rs 75,981 crore, a 13% rise from Rs 66,918.05 crore in the previous quarter (July-September).
What Is the Credit Growth for SBI in Q3FY25?
SBI reported an impressive 13.49% YoY credit growth, with domestic advances growing by 14.06% YoY. The bank’s gross advances crossed the Rs 40 lakh crore mark.
Breakdown of Credit Growth:
- SME Advances: Grew by 18.71% YoY.
- Agricultural Advances: Increased by 15.31% YoY.
- Corporate Advances: Registered a 14.86% YoY growth.
- Retail Personal Advances: Rose by 11.65% YoY.
- Foreign Office Advances: Grew by 10.35% YoY.
Frequently Asked Questions (FAQs)
1. What was SBI’s net profit for Q3FY25?
SBI reported a net profit of Rs 16,891 crore, an 84% YoY increase from Rs 9,163 crore.
2. How did SBI’s NII perform in Q3FY25?
SBI’s Net Interest Income (NII) grew by 4.09% YoY to Rs 41,620 crore.
3. What was the NIM for SBI in Q3FY25?
The Net Interest Margin (NIM) contracted by 19 bps YoY to 3.15%.
4. How did the market react to SBI’s Q3 results?
SBI shares were trading 0.55% lower at Rs 761.85 on the BSE following the results announcement.
5. What was the credit growth for SBI in Q3FY25?
The bank reported a 13.49% YoY credit growth, with domestic advances growing by 14.06% YoY.
6. What sectors contributed the most to SBI’s credit growth?
The SME sector led the growth with an 18.71% YoY increase, followed by agriculture (15.31%), corporate (14.86%), and retail personal (11.65%).
7. How much did SBI pay in interest during Q3FY25?
SBI paid Rs 75,981 crore in interest, up 13% from the previous quarter.
8. What was the operating profit for SBI in Q3FY25?
The bank’s operating profit stood at Rs 23,551 crore, a 15.81% YoY increase.
9. Did SBI’s profit decline sequentially?
Yes, the profit after tax (PAT) saw an 8% decline sequentially from Rs 18,331 crore in Q2FY25.
10. What are the growth prospects for SBI in the coming quarters?
SBI’s strong credit growth and operational efficiency position it well for continued success, though managing NIM and interest expenses will be key challenges.
Conclusion
SBI’s Q3 results for 2025 highlight the bank’s ability to navigate market challenges and deliver robust financial performance. With a significant rise in net profit, steady credit growth, and strategic focus on operational efficiency, SBI continues to reinforce its leadership in the banking sector.
Investors and stakeholders will be closely watching how the bank sustains this momentum in the upcoming quarters, especially in managing its NIM and interest expenses.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
