SBI Share Price Falls After Weak Q4 Results: Key Financial Highlights

Market Performance

SBI share price fell sharply on Monday, declining 1.78% to ₹786 after the bank reported weaker-than-expected earnings for the March quarter of FY25.

The stock has been downward for five consecutive trading sessions, dropping more than 4.62% overall.

Main News

The fall in SBI's share price comes after India's largest public sector bank posted a 10% year on year decline in net profit for the fourth quarter.

Investors saw This performance as disappointing, triggering a sell-off in the stock.

Financial Snapshot (Q4 FY25):

Net Profits

• Net profit declined to ₹18,642.59 crore, down from ₹20,698.35 crore in Q4 FY24
• This represents a YoY fall of 10%

Revenue (Net Interest Income)

• Net Interest Income (NII) rose by 2.7% YoY, reaching ₹42,774.55 crore.

Operating Profit

• Operating profit stood at ₹31,286 crore, an increase of 8.83% YoY.

Loan Loss Provisions

• Provisions increased by 20.35% YoY to ₹3,964 crore, up from ₹3,294 crore in the same quarter last year.

Net Interest Margins (NIM)

• NIM for domestic operations declined by 32 basis points, coming in at 3.15% compared to 3.47% in Q4 FY24

Asset Quality

• The gross NPA ratio improved to 1.82%, a drop of 42 basis points YoY
• Net NPA ratio also improved, decreasing by 10 basis points to 0.47%

Dividend Declaration

• SBI declared a dividend of ₹15.90 per share along with its Q4 results

Company Details

State Bank of India (SBI) is strong in India's banking sector with a diversified business model and broad customer base.

Despite a challenging quarter, asset quality has shown improvement, which may offer stability in the long term.

Summary

SBI's share price fell after disappointing Q4 FY25 results, with a 10% decline in net profit and pressure on margins weighing on investor sentiment.

Although operating profit and revenue gained marginally, the market reaction reflects concern over declining profitability and rising provisions.

Improved asset quality and dividend announcements were silver linings in an otherwise weak performance.