SBI April-June Net Profit Rises on Treasury Gains; Margins Narrow, Advances Up

State Bank of India reported a 12.5% on-year rise in consolidated net profit to ₹191.60 billion for April–June, driven by a sharp jump in treasury income. However, net interest income was flat and margins narrowed amid rate cuts by the central bank.

Treasury gains more than tripled to ₹80.83 billion, pushing other income up 55.3% on year to ₹173.46 billion. Total income grew 10.3% to ₹1.35 trillion.

Net interest income was flat at ₹410.72 billion, while domestic net interest margin fell 13 bps on quarter to 3.02% and declined 33 bps on year.

Provisions for SBI rose 38% on year to ₹47.59 billion, including ₹49.34 billion for bad loans. Operating expenses excluding provisions rose under 9% on year to ₹1.05 trillion.

Gross non-performing asset ratio was 1.83% as of June 30, versus 1.82% a quarter ago and 2.21% a year earlier. Net NPA ratio was stable at 0.47%. Slippages rose to ₹79.45 billion from ₹42.22 billion in January–March Recoveries and upgradations were ₹32.53 billion.

Advances rose 11.6% on year to ₹42.55 trillion, led by 12.6% growth in retail personal loans to ₹15.40 trillion. Domestic corporate loans grew 5.7% to ₹12.03 trillion. Total deposits rose 11.7% to ₹54.73 trillion, but savings deposits rose just 4.7%. CASA ratio slipped to 39.36%.

The domestic cost of deposits rose for the 12th straight quarter to 5.21% from 5.11% in January–March Credit cost rose to 0.47% from 0.39% in the previous quarter. Capital adequacy ratio stood at 14.63% under Basel-III norms.