The State Bank of India (SBKFF) Q4 2025 Winning Call Highlights: Strong profitability in the middle of the challenges

Appearance date: May 03, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• The State Bank of India (SBKFF) recorded a net profit increase of 16.08% compared to the previous year, which shows strong profitability.

• The bank contributed a stary wealth quality with a gross non-performance ratio (e.g.) at a 14-year low of 2.4%.

• Domestic credit growth was 11.56% compared to the previous year with essential contributions from personal segments of SMEs, agriculture, companies and retail.

• The bank's capital -care rates was 14.25%and significantly above the regulatory requirements, which indicates strong financial health.

• Digital bank initiatives were successful, with over 8.77 CRore customers registered according to the UN platform, which improved customer loyalty and operational efficiency.

• The bank's credit growth target was not fully reached, which was not due to the expected range of 14 to 16%, mainly due to unexpected advance payments in the corporate segment.

• The net profit for the fourth quarter of 2025 was declined by 10% compared to the previous quarter, which is due to higher provision.

• There were significant differences in the segmenters, with some segments, such as the retail banks showing a decline in income.

• The bank's cost -income relationship remains a problem, with a focus on increasing income in order to compensate for significant operating costs.

• The bank faces potential challenges from global economic uncertainties and domestic economic developments that could affect future growth.

Q: Why didn't the loan growth of 14-16% occur, and what were the reasons for growth lower than expected? A: The chairman said that although the bank had a strong pipeline, unexpected advance payments in the company segment, especially large central PSUs, with the use of equity financing to the extension, have influenced growth. Nevertheless, the bank still sees the visibility in the company side and expects growth of 12 to 13%, which is above the industry average.

Q: There is perception that SBI's net profit decreases by 10% due to higher provision. Could the bank use buffer regulations to avoid this? A: The chairman stated that the bank's strategy loads the costs and provisions on site to strengthen the balance sheet and to ensure a consistent performance. The focus is more on long -term stability than on short -term profit ads, and the bank has made precautions to maintain this strategy.

Q. A: The CFO made it clear that the increase in “other provisions” encompasses provisions for other claims and contingent photographs. With regard to the restoration of the large accounts, a part was booked as financial income due to the RBI guidelines, and the rest was reflected in the NPA reduction.