State Bank of India (SBI), the country’s largest lender by assets, reported a 10% decrease in net profit for the January-March 2025 quarter, with earnings dropping to ₹18,643 crore ($2.21 billion) from ₹20,698 crore in the same period the previous year. Despite the decline, the result exceeded analyst expectations of ₹17,739 crore.
The fall in profitability was mainly due to a contraction in the domestic net interest margin (NIM), which decreased to 3.15% from 3.47% a year earlier. Net interest income rose 2.7% to ₹42,775 crore. Loan growth stood at 12.03%, while deposits rose 9.48%. The gross NPA ratio improved to 1.82%, down from 2.13% in the previous quarter. The Reserve Bank of India’s recent interest rate cuts aim to stimulate economic growth but may continue to compress margins in the near term.
