SBI Q1 Results: Net profit rises marginally to ₹17,035.16 crore, NII up 5.7% YoY; Fundraising approved

SBI Q1 Results: State Bank of India (SBI) announced a 0.89 per cent rise in the net profits at ₹17,035.16 crore for the April to June quarter of the financial year 2024-25, as compared to ₹16,884.29 crore in the same quarter the previous year as per the bank's standalone statements, according to the Bombay Stock Exchange (BSE) filing on Saturday, August 3.

The public sector lender's net interest income (NII) rose 5.7 per cent year-on-year and fell 1.3 per cent quarter-on-quarter to ₹41,125 crore. The net interest margin (NIM) dropped 12 basis points (bps) at 3.35 per cent for the first quarter, compared to 3.47 per cent at the end of the June quarter of the financial year 2024. 

State Bank of India shares closed 1.72 per cent lower at ₹847.90 after Friday's trading session, as compared to ₹862.75 on the previous market close.

The largest public sector bank announced the approval of fundraising through bonds in the first quarter results. The bank aims to raise upto ₹25,000 crore from Indian and foreign investors in the financial year 2024-25, according to the company statement.

“The Central Board has accorded approval for raising funds in INR and /or USD by issue of Basel lll compliant Additional Tier 1 Bonds and Tier 2 Bonds, up to ₹25,000 crore to lndian and/or overseas investors during FY25, subject to approval of Government of lndia, wherever required,” said the bank in the earnings release.

SBI's gross non-performing assets (NPAs) have gone down 55 basis points (bps) to 2.21 per cent in the first quarter of FY2025 from 2.76 per cent in the same period last financial year. The values are at ₹84,226.04 crore in Q1 FY 2025 as compared to ₹91,327.84 crore in the same period the previous year.

The net NPAs also fell to 0.57 per cent at the end of the April to June quarter from 0.71 per cent in the same period a year ago. The capital adequacy ratio (CAR) stands at 13.86 per cent for the first quarter, as per the statement.