SBI (State Bank of India), the largest public sector bank in the country, has announced its financial results for the quarter ending December 2024 (Q3). The bank reported a sharp 83% year-on-year (YoY) increase in standalone net profit, reaching ₹16,891 crore. However, on a quarter-on-quarter (QoQ) basis, the profit was 7.8% lower compared to ₹18,331 crore from the same period last year. The net interest income for Q3 was ₹41,445.51 crore, a 4% YoY increase from ₹39,815.73 crore. However, it remained flat compared to ₹41,619.54 crore in the previous quarter.
During the results announcement, investors has pay close attention to the management’s comments on credit growth trends in the industry, as well as important financial indicators like loan and deposit growth, net interest margin (NIM), and the levels of gross and net non-performing assets (NPAs).
Before the Q3 results were announced, SBI shares closed at ₹766, falling 1.6% on February 5.
SBI Reports 13% YoY Credit Growth, Domestic Advances Rise 14%
SBI reported a 13.49% year-on-year (YoY) growth in credit, with domestic advances rising by 14.06% YoY. The bank’s gross advances have crossed ₹40 lakh crores.
Advances from foreign offices grew by 10.35% YoY.
SME (Small and Medium Enterprise) advances increased by 18.71% YoY.
Agri (Agriculture) advances grew by 15.31% YoY.
Corporate advances saw a 14.86% YoY growth.
Retail personal advances grew by 11.65% YoY.
Whole bank deposits grew by 9.81% YoY, with CASA (Current Account, Savings Account) deposits increasing by 4.46% YoY.
The CASA ratio stood at 39.20% as of December 31, 2024.
The Capital Adequacy Ratio (CAR) for SBI at the end of Q3FY25 is 13.03%, according to an exchange filing. 64% of savings bank accounts were opened digitally through YONO.
Additionally, the share of transactions made through Alternate Channels increased from around 97.7% in the first nine months of FY24 to about 98.1% in the first nine months of FY25.
Technical View
SBI shares are currently trading below all of their key exponential moving averages (EMAs), including the 21, 50, and 200-day averages. Additionally, a bearish engulfing pattern has formed on the daily chart, suggesting weakness in the stock. However, it’s important to note that this pattern signals a potential reversal to a downward trend, and it will be confirmed only if the next candle closes below the low of the current pattern.
SBI shares closed lower after its Q3 FY25 update. The stock ended the day at ₹752.35 on the BSE, dropping by 1.79%.
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