SBI Reports 84% Growth in Q3 Net Profit but Stock Declines

State Bank of India (SBI), one of India’s largest public sector banks, has announced an impressive 84% year-on-year growth in its net profit for the third quarter of the financial year 2024-25. The net profit surged to ₹16,891 crore, up from ₹9,164 crore in the same period last year. Despite this strong performance, SBI’s stock saw a decline, closing at ₹753.30 on the Bombay Stock Exchange (BSE) with a drop of 1.67%.

Key Highlights of SBI’s Q3 Performance

State Bank of India stock performance despite strong quarterly results

SBI’s total income for Q3 FY25 stood at ₹1,28,467 crore, reflecting a growth from ₹1,18,193 crore in the corresponding period of the previous year. The bank’s interest income also showed significant growth, rising from ₹1,06,734 crore to ₹1,17,427 crore, marking an increase of around 10%.

On the asset quality front, SBI improved its non-performing asset (NPA) ratios. The gross NPA ratio decreased to 2.07% as of December 2024, compared to 2.42% at the end of December 2023. The net NPA ratio also showed improvement, reducing from 0.64% to 0.53%.

Strong Growth in Loan Book and Deposits

SBI reported healthy growth in both its loan book and deposits. The bank’s consolidated net profit saw a remarkable 70% year-on-year increase, reaching ₹18,853 crore. Its total income also grew substantially, increasing from ₹1,53,072 crore to ₹1,67,854 crore.

Despite these positive numbers, SBI’s stock faced a decline, signaling market caution.

SBI’s Market Position

SBI’s third-quarter performance comes after the bank achieved a significant milestone in 2022, becoming one of the few Indian companies to surpass ₹5 trillion in market capitalization. It remains one of the largest and most influential banks in the country, alongside HDFC Bank and ICICI Bank.

Investors and analysts will continue to monitor the stock closely, considering both the strong financials and market movements that follow the results.

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