SBI Reports 84.32 % Rise in NP to Rs 16,891 crore for Q3FY25

Current Context: Q3FY25 Financial Results released by State Bank of India (SBI) on February 6, 2025

• Highlights of the Report:
• Net Profit: SBI reported an 84.32% year-on-year increase in net profit, reaching ₹16,891 crore for Q3FY25. This significant growth was driven by higher core income and improved asset quality.
• Net Interest Income (NII): The NII increased by 4.09% to ₹41,446 crore. This represents the difference between the interest earned by the bank on its lending activities and the interest paid on its deposits.
• Asset Quality: SBI's Gross Non-Performing Assets (NPA) ratio improved to 2.07%, indicating better management of bad loans and a healthier loan portfolio.
• Credit Growth: Domestic advances grew by 14.06% year-on-year, reflecting the bank's ability to expand its lending activities and support economic growth.
• Margins: Despite the growth in net profit and credit, margins were under pressure due to rising deposit costs.

Question: 

1. What was the percentage growth in SBI’s net profit for Q3FY25 compared to the previous year?

• A) 70.45%
• B) 84.32%
• C) 90.10%
• D) 65.20%

Answer: B) SBI’s net profit increased by 84.32% year-on-year for Q3FY25, driven by higher core income and improved asset quality.