The spotlight will be on the State Bank of India (SBI) as investors digest its latest financial report released for the quarter ending March 31, 2025. On March 2, the bank’s shares saw an impressive gain, closing at ₹799.80, reflecting a 1.41% increase. Over the past month, SBI’s stock has appreciated by 4.22%, making it a focal point for traders and analysts alike.
SBI Q4 Financial Highlights
In its recent announcement, SBI revealed a 10% year-on-year decline in net profit for the fourth quarter of FY25, with figures dropping to ₹18,642.59 crore, down from ₹20,698.35 crore in the same period last year. Despite this setback, the bank recorded a 2.7% rise in net interest income (NII), reaching ₹42,774.55 crore.
- Net Profit: ₹18,642.59 crore (down 10% YoY)
- Net Interest Income (NII): ₹42,774.55 crore (up 2.7% YoY)
- Operating Profit: ₹31,286 crore (up 8.83% YoY)
- Loan Loss Provisions: ₹3,964 crore (up 20.35% YoY)
Interestingly, SBI’s asset quality showed improvement as the gross NPA ratio decreased to 1.82%, a 42 basis point enhancement compared to the previous year. Additionally, the net NPA ratio improved to 0.47%, marking a 10 basis point year-on-year gain.
Dividend Announcement
In conjunction with its financial performance, SBI declared a dividend of ₹15.90 per share, reinforcing its commitment to returning value to shareholders despite the dip in profit.
Expert Insights on SBI’s Performance
Seema Srivastava, a senior research analyst at SMC Global Securities, commented on SBI’s robust performance: “The bank’s improving asset quality and growing advances position it as a compelling option for long-term investors. Its diversified model and government backing offer a stable foundation for sustained growth."
Investment Potential: Buy or Sell?
Looking ahead, Srivastava believes that the results underscore SBI’s solid banking franchise, suggesting it remains a viable investment for those with a long-term outlook.
Anshul Jain, head of research at Lakshmishree Investment and Securities, noted that SBI has recently broken out of a 59-day cup and handle pattern, with a breakout level of ₹790 now acting as critical support. “The current pullback to this neckline presents a prime buying opportunity, especially if bullish signals persist. If ₹790 holds, the stock could challenge or exceed its all-time highs,” Jain stated.
Key Takeaways
- Current Share Price: ₹799.80 (up 1.41% on March 2)
- Dividend: ₹15.90 per share
- Investment Outlook: Positive, with both short- and long-term opportunities
SBI continues to demonstrate resilience in challenging times, and its latest results reflect a mixture of cautious optimism and potential for growth. Investors should keep an eye on this banking giant as it navigates the financial landscape.
