State Bank of India (SBI) has shown a marked improvement in asset quality in its Q2 FY25 results, with a reduction in both Gross NPA and Net NPA ratios. This improvement underscores the bank’s effective risk management practices and successful recovery efforts.
Key Asset Quality Highlights:
- Gross NPA Ratio: The Gross NPA ratio improved to 2.13%, a decrease of 42 basis points YoY, reflecting SBI’s focus on maintaining high asset quality.
- Net NPA Ratio: The Net NPA ratio stood at 0.53%, down by 11 basis points YoY, indicating enhanced credit management and minimized loan defaults.
- Provision Coverage Ratio (PCR): SBI’s Provision Coverage Ratio, including AUCA, improved by 28 basis points YoY to 92.21%, highlighting its strong provision base.
- Credit Cost: Credit cost for the quarter was reported at 0.38%, showcasing prudent risk assessment and provisioning practices.
SBI’s asset quality metrics demonstrate the bank’s commitment to managing non-performing assets and enhancing its overall credit health. With a steady decline in GNPA and NNPA ratios, SBI continues to strengthen its balance sheet and improve financial resilience.
