Q2 2025 State Bank of India Earnings Call Transcript
Key Points
- State Bank of India (FRA:SID) reported a strong credit growth of 14.93% year-on-year, surpassing the industry average.
- The bank's profit for the quarter increased by 28% year-on-year, reaching INR18,331 crore.
- SBI's asset quality remains robust with a net NPA ratio improving by 11 basis points year-on-year to 0.53%.
- The bank's capital adequacy ratio stands at 13.76%, well above the regulatory requirement, indicating a strong capital position.
- SBI's digital banking platform, YONO, continues to grow with over eight crore customers registered, driving the bank's digital agenda.
- Deposit growth at 9.13% year-on-year lags behind credit growth, raising concerns about the sustainability of credit expansion.
- The bank's cost base remains substantial, highlighting challenges in managing compliance and establishment expenses.
- SBI's unsecured personal loan segment, Xpress Credit, has seen a slowdown in growth, attributed to demand slack and high repayment rates.
- The bank's reliance on other income, including trading gains and forex income, raises questions about the sustainability of such income levels.
- Concerns were raised about the elevated delinquency levels in the credit card segment, reflecting broader industry trends.
Good evening, ladies and gentlemen. I'm Pawan Kumar, General Manager, Performance Planning and Review Department of the bank. On behalf of State Bank of India, I'm delighted to welcome the analysts, investors, colleagues, and everyone present here today on the occasion of the declaration of the quarter two financial year '25 results of the bank. I also extend a warm welcome to all the people who are accessing the event through our live webcast.
We have with us on the stage our Chairman, Shri C.S. Setty at the center; our Managing Director, Corporate Banking and Subsidiaries, Shri Ashwini Kumar Tewari; our Managing Director, Retail Business and Operations, Shri Vinay M. Tonse; our Managing Director, Risk, Compliance and SARG, Shri Rana Ashutosh Kumar Singh; our Deputy Managing Director, Finance, Smt Saloni Narayan; our Deputy Managing Directors heading various verticals and Managing Directors of the subsidiaries are seated in front rows of this hall. We are also joined by Chief General Managers of different
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