In February 2025, the country's largest public sector lender State Bank of India announced its Q3 FY25 results, showing a solid financial performance driven by significant loan growth. Owing to increased operational efficiency and robust loan growth, the bank's net profit skyrocketed and its net interest income saw a significant year-on-year increase. Despite varying estimates from analysts, the consensus was that this would be a successful quarter for the financial giant.
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Main Highlights of SBI Q3 FY25 Results
Net Interest Income
It estimates SBI's NII to grow 6.2% to 7.6% year-on-year to ₹42,845 crore from ₹42,290 crore. Nomura estimates NII to grow 7% year-on-year and 2% quarter-on-quarter to ₹42,560 crore.
Net Profit
Net profit is forecast to grow substantially; estimates range from 61% to 89% year-on-year growth, or ₹14,748 crore to ₹17,293 crore.
Loan Growth
Robust loan growth in both business and retail divisions is the main reason for the impressive performance. At 14%, loan growth is forecast to remain robust YoY/4 percent quarter-on-quarter.
Deposit Growth
It estimates SBI's Q3 deposit book to be ₹52.48 trillion, up 3% quarter-on-quarter and 10% year-on-year.
Asset Quality
Analysts expect slippage to be minimal and a reversal to SMA-1/2.
Factors Driving the Earnings
Analysts at KR Choksey estimated SBI's loan book to grow 14% year-on-year to Rs 35 lakh crore in Q3 FY25, while deposits would grow 13.3% year-on-year to Rs 47 lakh crore. The rise in net profit was partly a result of lower employee expenses. Stable asset quality led to a rise in the bank's profits.
Expert Estimates and Brokerage Recommendations
Various brokerages have offered their insights and estimates for SBI Q3 FY25 results:
Sharekhan: SBI's third quarter NII is estimated to grow by 1.6% quarter-on-quarter and 6.2% year-on-year to reach Rs 42,290 crore. PAT is estimated to be Rs 14,748 crore, a decline of 19.5% quarter-on-quarter but a growth of 61% year-on-year.
Elara Capital: SBI's NII is estimated to grow by 2.2% quarter-on-quarter and 7% year-on-year to reach Rs 42,519 crore. PAT is estimated to be around Rs 16,618 crore, reflecting a decline of 9.3% quarter-on-quarter but a growth of 81% year-on-year.
Nomura: It was estimated that SBI's net profit would grow by a robust 86% year-on-year. It has estimated SBI's third quarter net profit at Rs 17,010 crore, as against Rs 9,160 crore in Q3 FY24.
Citi Research: Domestic advances are expected to grow 13% y-o-y and 3% q-o-q, to reach Rs 39.75 trillion, in line with the system average growth.
Prabhudas Lilladher: SBI's Q3 earnings are estimated to grow only 7% y-o-y to Rs 15,463.2 crore.
Motilal Oswal Financial Services (MOFSL): SBI's estimated provisions will remain high at Rs 5,160 crore in Q3 FY25, restricting net profit growth to 77% y-o-y at Rs 16,240 crore.
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