State Bank of India, India’s largest lender, reported a 10% year-on-year decline in standalone net profit for the March quarter to ₹186.43 billion due to lower treasury income and a sharp rise in provisions for bad loans.

Net interest income rose 2.7% year-on-year to ₹427.75 billion. However, the bank’s domestic Net Interest Margin came under pressure, declining by 32 basis points to 3.15% in January–March from 3.47% a year earlier.

SBI Chairman C.S. Setty anticipates a further 50 basis point policy rate cut by the Reserve Bank of India, which could place further pressure on margins.

Setty also noted that last year’s profits were bolstered by one-off provision write-backs, absent this time. Provisions for bad loans in the March quarter rose sharply to ₹64.42 billion, compared with ₹16.10 billion a year earlier. However, asset quality improved, with gross non-performing assets falling to 1.82% from 2.24%, and net NPAs easing to 0.47% from 0.57%.

On the business front, advances grew 12.03% year-on-year to over ₹42.21 trillion, while total deposits increased by 9.48% to surpass ₹53.82 trillion. The current account and savings account deposits rose by 6.34%.

SBI has revised its credit growth guidance for 2025-26 to 12–13%, down from 14–16% the previous year, citing macroeconomic uncertainty and a cautious investment environment.

For the full financial year 2024-25, SBI reported a 16% increase in standalone net profit to ₹709 billion, compared with ₹610.77 billion in the previous year.

The bank’s board has declared a dividend of ₹15.90 per equity share for 2024-25. It also approved plans to raise up to ₹250 billion in equity capital during 2025-26 through a Qualified Institutional Placement, Follow-on Public Offer, or other methods.