India's largest lender SBI records a 10% dip in net profit in Q4, plans to raise ₹25,000 crore

The State Bank of India on Saturday reported a 10 per cent decline in its quarterly profit, falling to ₹18,643 crore, as a narrow net interest margin weighed on its earnings.  

However, the country’s largest lender posted a 16.08 per cent increase in its annual profit, posting a figure of ₹70,901 crore in FY25 from ₹61,077 crore in FY24. But, the bank's domestic net interest margin slid by 32 basis points to 3.15 per cent, from the 3.47 per cent reported a year ago. 

SBI said there was a 7.7 per cent increase in the Interest Income at ₹1,19,666 crore in the fourth quarter of 2025, compared to ₹1,11,043 in the same period last year. The bank also said that its Net Interest Income grew by 2.7 per cent to ₹42,775 crore. 

However, the bank incurred a 20 per cent increase in the loan loss provisions in the current quarter, amounting to ₹3,964 crore, compared to ₹3,294 crore in Q4 2024. Loan loss provisions are funds banks set aside to cover potential losses from loans that may not be repaid, representing a financial cushion for bad or risky loans.

Furthermore, SBI has declared a dividend of ₹15.90 per equity share for the financial year ended March 31, 2025. The bank also announced plans to raise equity capital of up to ₹25,000 crore in the upcoming financial year.

Meanwhile, the bank's total income stood at ₹6.63 lakh crore in FY25, an 11.6 per cent increase from ₹5.95 lakh crore reported a year ago. 

The bank also posted an operating profit of 1.26 lakh crore in FY2025, a rise of 18.6 per cent. Meanwhile, the operating profit in Q4 grew by 8.83 per cent to ₹31,286 crore.