{"id":166935,"date":"2025-02-18T05:40:55","date_gmt":"2025-02-18T10:40:55","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166935"},"modified":"2025-02-18T05:40:55","modified_gmt":"2025-02-18T10:40:55","slug":"sbin-q3-2024-2025-call-highlights-deposit-mix-shift-digital-surge-and-global-expansion","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/sbin-q3-2024-2025-call-highlights-deposit-mix-shift-digital-surge-and-global-expansion\/","title":{"rendered":"SBIN Q3 2024-2025 Call Highlights: Deposit Mix Shift, Digital Surge and Global Expansion!"},"content":{"rendered":"<p>State Bank of India, one of the biggest state-owned financial institutions in India, in its Q3 earnings call confirmed meeting its credit growth guidance of 14-16% and deposit growth target of 10%, with a robust corporate loan pipeline of 483,000 crores, though operating profit declined due to MTM losses. The bank maintains a risk-adjusted return approach with a 20% target for corporate lending, while continuing its branch expansion with plans to add 400-430 branches this year. Despite margin compression from higher deposit costs, management remains confident of maintaining NIMs above 3% and credit costs around 50 bps, with strong growth across retail segments. The bank\u2019s international operations have become significant, reaching INR6 trillion in customer credit, with a balanced portfolio across local credit, ECBs, and trade finance.<\/p>\n<p>State Bank of India reported strong Q3 results with consolidated net profit surging 70% year-over-year, though this growth was partly attributed to a INR7,100 crore one-time pension expense in the previous year&#8217;s quarter and showed a 7.86% sequential decline. Total revenue reached INR167,853 crore, with interest income growing by 10% to INR117,427 crore and Net Interest Income increasing modestly by 4.09% to INR41,446 crore, while Net Interest Margin declined to 3.01%. The bank showed strong sectoral growth with gross advances up 13.49%. Asset quality improved with gross NPAs at 2.07% and net NPAs at 0.53%, supported by a provision coverage ratio of 74.6% and a healthy Capital Adequacy Ratio of 13.03%. Despite total deposits growing by 9.81% to INR52.29 trillion, CASA deposits showed modest 4.46% growth, leading to a reduced CASA ratio of 39.2%. The SBI Group&#8217;s consolidated performance was strong with a 70% rise in net profit to INR18,853 crore, though the bank&#8217;s shares traded 1.8% lower at INR752.7 following the announcement.<\/p>\n<p>Continue Reading: Discover the Vital Insights from State Bank of India&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Total Revenue:<\/strong> INR167,853 crore, up 9.6% YoY.<\/li>\n<li><strong>Net Profit<\/strong>: INR19,175 crore, up 70% YoY.<\/li>\n<li><strong>Basic EPS<\/strong>: INR21.12, up 70.3% YoY.<\/li>\n<li><strong>Total Deposit<\/strong>: INR52.29 trillion, up 9.81% YoY.<\/li>\n<li><strong>Total Expense<\/strong>: INR20,532 crore, up 13.5% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Financial: <\/strong>Expects to maintain RoE above 15% through business cycles.<\/li>\n<li><strong>Operational: <\/strong>Focus on increasing current account deposits and strengthening customer outreach.<\/li>\n<li><strong>Digital Transformation: <\/strong>Continued digital transformation through YONO.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>Operating Profit &amp; Credit Growth, Corporate Credit Pipeline (Ashok Ajmera \u2013 Ajcon Global, Ashwini Tewari \u2013 MD): <\/strong>SBI&#8217;s operating profit declined due to trading losses and revaluation of investments. Despite this, the bank maintains a 14%-16% YoY credit growth target and expects deposit growth of 10%, aligning with revised guidance. SBI has a \u20b94.83 trillion corporate loan pipeline, with \u20b92.22 trillion already sanctioned. The bank is confident of achieving its 10%-12% corporate credit growth target<strong>\u00a0(C S Setty \u2013 Chairman).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Margin Compression &amp; Cost of Deposits, Xpress Credit GNPA Increase (Akshay \u2013 Autonomous): <\/strong>Margins declined 13 bps sequentially due to higher deposit costs and lower treasury gains. However, SBI maintains a NIM guidance of 3%+ and RoE of 15% plus. The rise in Xpress Credit GNPA from 0.77% to 1.11% is mainly due to denominator effects and industry-wide trends in unsecured loans. SBI expects double-digit growth recovery in Xpress Credit soon<strong> (C S Setty \u2013 Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Forex Income Decline, Bancassurance &amp; Right Selling (Mahrukh Adajania \u2013 Nuvama): <\/strong>MTM losses from forex exposures and derivative positions led to lower forex income. However, corrections in interest rates should recoup losses in Q4. SBI has implemented strict product approval processes and an internal ombudsman to ensure proper sales practices in bancassurance. SBI&#8217;s complaint rate is the lowest in the industry<strong> (Rama Mohan Rao Amara \u2013 MD, IB &amp; Global Markets)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Risk-Adjusted Returns &amp; Capital Allocation, Deposit Growth &amp; Branch Expansion (Piran Engineer \u2013 CLSA India): <\/strong>SBI maintains a 20% risk-adjusted return on capital (RAROC) benchmark for corporate credit and balances retail products based on return metrics. Business units must justify exceeding risk-weighted asset (RWA) allocations. SBI is not engaging in a rate war but aligns deposit rates to market conditions. Plans to open 500-600 new branches annually in underserved areas while strengthening customer outreach<strong> (C S Setty \u2013 Chairman, Vinay M Tonse \u2013 MD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>MCLR Repricing &amp; Margin Stability, Deposit Growth &amp; CASA Strategy (Kunal Shah \u2013 Citigroup, Gaurav Kumar Panda &#8211; Analyst): <\/strong>35 bps room remains for MCLR increases, but rate cuts may limit hikes. Repricing impacts will reflect in Q4, and margins are expected to stay above 3%. SBI sees deposit mix shifting towards term deposits but expects CASA growth through targeted customer engagement and salary accounts<strong> (C S Setty \u2013 Chairman, Saloni Narayan \u2013 DMD, Finance)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>SME Loan Growth Sustainability &amp; International Book Expansion (Deepak Gupta \u2013 Analyst, Ashok Ajmera \u2013 Ajcon): <\/strong>SBI\u2019s Business Rule Engine (BRE) has enabled \u20b935,000 crore in SME disbursements within nine months, with improved turnaround times. Budgetary SME incentives will further drive growth. SBI\u2019s \u20b96 trillion international loan book contributes 15% to advances, focusing on trade finance and global supply chain participation. Flexible expansion allows quick scaling up or down based on market conditions<strong> (C S Setty \u2013 Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Bank of India, one of the biggest state-owned financial institutions in India, in its Q3 earnings call confirmed meeting its credit growth guidance of 14-16% and deposit growth target of 10%, with a robust corporate loan pipeline of 483,000 crores, though operating profit declined due to MTM losses. The bank maintains a risk-adjusted return [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[151,10169,9488],"class_list":["post-166935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-earnings","tag-financial-serives"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":166837,"url":"https:\/\/alphastreet.com\/india\/pnb-q3-2024-2025-call-highlights-stable-deposits-lower-credit-costs-and-digital-milestones\/","url_meta":{"origin":166935,"position":0},"title":"PNB Q3 2024-2025 Call Highlights: Stable Deposits, Lower Credit Costs and Digital Milestones!","author":"Praveen","date":"February 12, 2025","format":false,"excerpt":"Punjab National Bank, the second largest public sector bank in India in terms of business volumes, in its Q3 earnings call outlined the bank's stable growth path, targeting 13-14% credit growth with strong asset quality (97% provision coverage ratio). The bank saw lower other income in Q3 due to reduced\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":166641,"url":"https:\/\/alphastreet.com\/india\/icicibank-q3-2024-2025-call-highlights-loan-portfolio-expansion-fee-income-surge-and-cost-efficiency\/","url_meta":{"origin":166935,"position":1},"title":"ICICIBANK Q3 2024-2025 Call Highlights: Loan Portfolio Expansion, Fee Income Surge, and Cost Efficiency!","author":"Praveen","date":"February 3, 2025","format":false,"excerpt":"ICICI Bank Ltd., one of the largest private sector banks in India, in its Q3 earnings call highlighted strong fee income growth from transaction banking, cards, and payments, along with stable asset quality despite some unsecured loan delinquencies. Business banking continued to expand, supported by digitization and collateral security. The\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":166601,"url":"https:\/\/alphastreet.com\/india\/hdfcbank-q3-2024-2025-call-highlights-deposit-surge-margin-challenges-and-growth-strategy\/","url_meta":{"origin":166935,"position":2},"title":"HDFCBANK Q3 2024-2025 Call Highlights: Deposit Surge, Margin Challenges, and Growth Strategy!","author":"Praveen","date":"January 24, 2025","format":false,"excerpt":"HDFC Bank Ltd., an Indian banking and financial services company, in its Q3 earnings call discussed about a strategic approach to navigating challenging macro conditions through careful growth calibration. The company mentioned that it\u2019s maintaining stable credit quality across segments while addressing priority sector lending requirements through organic growth and\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":177050,"url":"https:\/\/alphastreet.com\/india\/bank-of-india-shares-closed-lower-after-q3-fy26-results-briefing\/","url_meta":{"origin":166935,"position":3},"title":"Bank of India shares closed lower after Q3 FY26 results briefing","author":"Staff Correspondent","date":"January 22, 2026","format":false,"excerpt":"Bank of India Ltd (NSE: BANKINDIA; BSE: 532149) closed at \u20b9157.0 on Wednesday, down about 1% from the previous close, following the bank\u2019s analyst briefing on its third-quarter FY26 financial performance. Market Capitalization The lender\u2019s market capitalization stood at approximately \u20b972,000 crore at the end of the trading session. Latest\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":177734,"url":"https:\/\/alphastreet.com\/india\/axis-bank-posts-steady-q3-fy2026-growth-as-core-profit-and-loan-book-expand\/","url_meta":{"origin":166935,"position":4},"title":"Axis Bank Posts Steady Q3 FY2026 Growth as Core Profit and Loan Book Expand.","author":"Staff Correspondent","date":"January 26, 2026","format":false,"excerpt":"Executive Summary Axis Bank Ltd reported earnings for the quarter and nine months ended 31 December 2025, showing broad-based growth in deposits, advances, and core profitability, with net profit rising modestly year-on-year and improving significantly quarter-on-quarter. The results reflect sustained momentum in retail and corporate lending, healthy fee income, and\u2026","rel":"","context":"In &quot;Finance&quot;","block_context":{"text":"Finance","link":"https:\/\/alphastreet.com\/india\/category\/finance-stocks\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":158453,"url":"https:\/\/alphastreet.com\/india\/state-bank-of-india-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":166935,"position":5},"title":"State Bank of India Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 5, 2024","format":false,"excerpt":"Key highlights from State Bank of India (SBIN) Q3 FY24 Earnings Concall Quarterly Performance Net profit for Q3 FY24 stands at INR 9,164 crore, up 20% YoY despite providing for wage revision and pension liabilities. ROA has improved by 7 bps YoY to 0.94% and ROE has improved by 88\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=166935"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=166935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=166935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=166935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}