SBI’s Profit Dips Amidst Economic Challenges, Aims for Steady Growth

State Bank of India posted an 8.34% decline in net profit for Q4 due to lower net interest margins. Despite a rise in total income and net interest income, NIMs fell. SBI aims for a 12-13% loan growth amidst tariff and policy challenges, foreseeing prolonged NIM pressures.

The State Bank of India has reported a significant dip in its consolidated net profit, plummeting by 8.34% to Rs 19,600 crore in the January-March quarter from Rs 21,384 crore a year earlier. The decline is attributed largely to the fall in net interest margins.

On a standalone basis, India's leading bank saw its net profit decrease to Rs 18,642 crore in the latest quarter, down from Rs 20,698 crore in the same period last year. Even as its core net interest income rose by 2.69% to Rs 42,775 crore, the net interest margin (NIM) decreased by 32 basis points to 3.15% over the past year.

SBI's operating profit for FY25 reached Rs 1.10 lakh crore, showing a notable increase from Rs 93,000 crore in the previous year. Chairman C S Setty acknowledged ongoing pressure on NIMs, with policy rate adjustments by the RBI and linked lending rates affecting loan growth projections.

(With inputs from agencies.)