SBI Q4 Results 2025: 10% Decline in Q4FY25 Profit; Declares Rs 15.90 Dividend Per Share
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SBI Q4 Results 2025
India’s largest state-owned lender, State Bank of India (SBI), announced its financial results for the fourth quarter of the fiscal year 2024-25 on May 3. The bank reported a notable 10% year-on-year (YoY) drop in its standalone net profit, amounting to Rs 18,643 crore for SBI Q4 Results 2025, compared to Rs 20,698 crore in the same period last year. On a consolidated basis, SBI’s net profit also declined by 8% YoY to Rs 19,600 crore, from Rs 21,384 crore a year ago.
Despite the dip in net profit, the bank has declared a dividend of Rs 15.90 per equity share, reflecting its commitment to reward shareholders. The bank’s performance comes amid a mixed financial environment, with rising interest income but pressure on margins and profitability.
Other Financial Effects
Net Interest Income and Margins
SBI’s net interest income (NII), a key measure of its core lending business, grew modestly by 2.7% YoY, reaching Rs 42,774.55 crore in SBI Q4 Results 2025. This growth, though positive, is subdued compared to previous quarters, indicating a deceleration in income growth from interest-earning assets.
The Net Interest Margin (NIM) for SBI’s domestic book contracted by 32 basis points to 3.15% in SBI Q4 Results 2025, down from 3.47% reported in the fourth quarter of FY24. This contraction points to a narrowing spread between the bank’s lending and deposit rates, potentially due to competitive pressures and a high-cost deposit environment.
Total Income and Interest Earnings
Despite the fall in profit, the bank witnessed an increase in total income. For the quarter ending March 2025, SBI’s total income rose to Rs 1,43,876 crore from Rs 1,28,412 crore in Q4FY24. The increase was driven by higher interest earnings and non-interest income streams.
The bank earned an interest income of Rs 1,19,666 crore in Q4FY25, up from Rs 1,11,043 crore in the corresponding quarter last year. This 7.8% increase in interest income reflects the overall growth in the bank’s loan book and an increase in lending rates during the year.
Consolidated Financial Performance
On a consolidated basis, which includes its subsidiaries such as SBI Life Insurance and SBI Mutual Fund, the bank reported a net profit of Rs 19,600 crore for SBI Q4 Results 2025, representing an 8% decline from Rs 21,384 crore reported in the same quarter of FY24.
Consolidated total income surged to Rs 1,79,562 crore from Rs 1,64,914 crore, indicating growth in earnings across group companies despite pressures on net profits.
Improvement in Asset Quality
One of the bright spots in SBI Q4 Results 2025 performance is the improvement in asset quality. The bank’s gross non-performing assets (GNPAs) declined to 1.82% of total advances, compared to 2.24% at the end of Q4FY24. This marks a significant improvement, highlighting better credit management and recovery efforts.
Similarly, the net NPA ratio improved to 0.47% as of March 2025, down from 0.57% a year ago. The reduction in NPAs reflects strengthening asset quality and may provide relief to investors and regulators alike.
Dividend Declaration
Along with its earnings announcement, SBI’s board declared a dividend of Rs 15.90 per equity share for FY25. The dividend decision underscores the bank’s strategy to maintain investor confidence despite the drop in quarterly profits.
The dividend will be paid to shareholders whose names appear in the company’s register as on the record date set by the board, SBI Q4 Results
Strategic Commentary and Outlook
SBI continues to maintain its position as India’s largest commercial bank by assets, deposits, and branches. The management attributed the decline in net profit to rising operating expenses and narrowing interest margins but expressed confidence in the bank’s long-term growth trajectory.
Going forward, SBI is expected to focus on enhancing its digital banking infrastructure, expanding retail credit, and improving operational efficiencies. The bank is also aiming to leverage its vast customer base to cross-sell financial products through its subsidiaries.
Market Reaction and Investor Sentiment
Following the earnings announcement, SBI’s stock saw modest movement in the equity markets. Analysts noted that while the decline in profit and NIM compression were concerning, the improvement in asset quality and growth in total income provided a balanced outlook.
Brokerages are expected to revise their target prices and earnings estimates for SBI in light of the Q4 results, with a particular focus on credit growth, asset quality trends, and margin management in the coming quarters.
SBI Q4 Results 2025 present a mixed picture: a decline in profitability weighed against improvements in asset quality and modest income growth. While challenges remain in terms of interest margin pressures and expense control, the bank’s strong fundamentals, extensive network, and continued focus on digital transformation position it well for long-term growth.
The dividend payout of Rs 15.90 per share is a positive takeaway for investors, and the overall financial performance indicates resilience in a challenging macroeconomic environment. As India’s financial sector continues to evolve, SBI’s strategic execution in the coming quarters will be closely watched by stakeholders across the board.
