SBI Stock Update: 23.74% 1-Year Return, Q2 Profit Rises 28%

SBI share price is currently trading at ₹793.60, reflecting a rise of ₹5.30 (0.67%) as of December 31, 10:40 AM. The stock opened at ₹786.95 and recorded a high of ₹796.20 and a low of ₹786.00 during the session. With a market capitalisation of ₹7.08 lakh crore, SBI boasts a P/E ratio of 9.89 and a dividend yield of 1.73%. 

About State Bank of India

State Bank of India (SBI), a Fortune 500 company, is a leading public sector bank and financial services provider in India. Headquartered in Mumbai, it is the country’s largest and oldest bank, with a rich history spanning over 200 years.

Share Price Performance 

Over the past year, SBI share price has demonstrated a strong performance, gaining ₹152.25 (23.74%). However, recent trends have been less favourable, with the stock declining by ₹26.65 (3.25%) over the last five days, ₹42.80 (5.12%) in the past month, and ₹48.35 (5.74%) over six months. Notably, SBI has shown significant long-term growth, appreciating by ₹459.90 (137.82%) over the past five years. 

SBI Q2 FY25 Results: Profit and Growth Overview

India’s largest public sector bank, SBI, reported a 28% year-on-year (Y-o-Y) increase in standalone net profit for the July-September quarter (Q2 FY25), reaching ₹18,331.4 crore. This performance significantly exceeded market expectations, which had predicted a profit rise of 10-17% Y-o-Y. In comparison, SBI’s net profit for Q2 FY24 stood at ₹14,433.03 crore, while its Q2 profit grew 7.6% sequentially from ₹17,035.16 crore in Q1 FY25.

Key Financial Metrics

• Net Interest Income (NII): SBI’s NII for Q2 FY25 was ₹41,620 crore, reflecting a 5.3% Y-o-Y increase from ₹39,500 crore in Q2 FY24. On a quarter-on-quarter (Q-o-Q) basis, the NII remained stable compared to ₹41,125.5 crore in Q1 FY25.
• Net Interest Margin (NIM): The bank’s NIM reduced by 16 basis points (bps) Y-o-Y to 3.27% in Q2 FY25, down from 3.43% in Q2 FY24. Sequentially, it declined by 8 bps from 3.35% in Q1 FY25.

Recent Business Developments

State Bank of India (SBI) successfully raised ₹10,000 crore on November 18, 2024, through its seventh infrastructure bond issuance. The bonds, which carry a 7.23% annual interest rate, have a tenor of 15 years.

The issue received bids worth over ₹11,500 crore, more than twice the base issue size of ₹5,000 crore. A total of 85 bids were submitted, showcasing broad participation from various investor categories, including provident funds, insurance companies, pension funds, and mutual funds.

The funds raised will be used to support long-term financing for infrastructure projects and affordable housing.

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