ECONOMIC OVERVIEW

Global growth is likely to face significant headwinds going ahead emanating from overlapping factors of trade-related tariff barriers, rapid currency swings and fractured capital/investment flows. Factoring in the impact of trade wars, global GDP may see a downside of 30‑50 bps in 2025 in a baseline scenario. In the foreseeable future, global economic activity looks poised to be further impacted by trade tensions and policy uncertainties.

Notwithstanding myriad global challenges and spillovers of exogenous shocks, the Indian economy continues to display maturity and resilience. NSO’s Second Advance estimates (AEs) put real Gross Domestic Product (GDP) growth at 6.5% for FY2025, anchored by GoI’s continued thrust on capital expenditure. The strategy has been pivotal towards crowding in private investments. States have also been collaborating towards creating world-class infrastructure across physical, social and digital spheres. Credit growth remains in double digits despite some moderation on account of shift away from unsecured assets. Moving ahead, healthier Corporate and bank balance sheets will strive to ringfence the economy from the perils of global upheavals and periodic bouts of volatility. GDP growth is forecasted at 6.5% (RBI Projections) in FY2026 though some moderation may be seen due to the adverse impacts on trade front. However, robust domestic consumption and investments supported by fiscal and monetary policies coupled with lower inflation should mitigate such headwinds. Inflation has moderated below 4% and has been reported to be at 3.16% as at the end of April 2025.

Advances Growth

Your Bank’s advances grew by 12.03% to ₹42.21 Lakh Crore in FY2025. Domestic credit grew by 11.56% to ₹36.02 Lakh Crore and the foreign offices loan portfolio grew by 14.84% to ₹6.19 Lakh Crore. The domestic CD ratio has improved to 69.71% in FY2025, compared to 68.34% in FY2024. The domestic retail advances have crossed ₹15 Lakh Crore mark in the FY2025, standing at ₹15.06 Lakh Crore, constituting 41.8% of the domestic advances of your Bank. On a sectoral basis, Home Loans hold a share of 55.1%, growing by 14.46% with a portfolio of ₹8.31 Lakh Crore in FY2025. Auto loans grew by 9.06% to ₹1.27 Lakh Crore. As on March 2025, your Bank’s market share in home loans and Auto loans stood at 27.3% and 20.2% respectively. Personal gold loans grew at a robust pace of 53.05% to ₹50,011 Crore, while Xpress credit loans grew by 0.49% to ₹3.50 Lakh Crore.

It gives me immense pleasure to bring to your attention that your Bank’s SME portfolio has now crossed ₹5 Lakh Crore mark, growing by 16.86% and is ₹5.06 Lakh Crore as on March 2025. Agri Advances too grew robustly by 14.29% touching ₹3.49 Lakh Crore. The Corporate loan portfolio grew by 9.0% to ₹12.41 Lakh Crore.

Investment

Your Bank’s total investment book increased to ₹16.94 Lakh Crore, of which 95.62% are domestic investments. Within the domestic investment portfolio, 74.85% is in HTM category and 13.75% in AFS category. The yield on investment increased to 7.21% in FY2025 from 7.0% in FY2024.

Profitability

Your Bank continued its stellar performance, and the standalone operating profit crossed ₹1 Lakh Crore to touch ₹1.11 Lakh Crore in FY2025, with YoY growth of 17.89%. Standalone net profit grew by 16.08% to ₹70,901 Crore, as against last year’s net profit of ₹61,077 Crore. Your Bank has registered significant improvement on the asset quality front, provision coverage ratio, RoA, and NII in FY2025.

The Net Interest Income (NII) of your Bank grew by 4.43% to ₹1.67 Lakh Crore in FY2025 (₹1.60 Lakh Crore in FY2024). The cost-to-income ratio improved to 51.64% in FY2025 from 55.66% in FY2024. Return on Assets (RoA) increased to 1.10% in FY2025, against 1.04% for FY2024, signalling that the journey towards guidance of RoA of 1%+ has been on track with continuous improvement in RoA. Return on Equity (RoE) declined marginally to 19.87% for FY2025 against 20.32% during FY2024.

Capital

The capital ratios of your Bank continued to improve during the financial year on the back of better planning, ploughing back of profits and efficient risk management of the banking business. The credit risk weighted assets as a ratio of gross advances improved by 107 bps to 58.07% in March 2025, thereby improving the overall capital adequacy. Your Bank registered highest ever CET 1 ratio at 10.81%, improving by 45 bps during the year. The overall Capital Adequacy Ratio (CAR), as at the end of March 2025, stands at 14.25%, well above the minimum regulatory requirement. With another year of record profits in FY2025, the capital position of your Bank remains comfortable to tap future growth opportunities.

Asset Quality

The sustained focus to contain risk, well supported by recovery in economic growth and private consumption, kept the asset quality robust in FY2025. Gross NPA of your Bank stood at 1.82%, an improvement of 42 bps (YoY) while the net NPA stood at 0.47%, an improvement of 10 bps (YoY). The credit cost at 0.38% increased by 9 bps from the previous year.

The asset quality remained stable along the trends seen last year. All segments saw improvement in NPA ratios. Overall, gross NPA declined by ₹7,396 Crore to ₹76,880 Crore as at end March 2025, against ₹84,276 Crore last year.

The slippage ratio further improved by 7 bps to 0.55% during FY2025. The recovery and upgradations from AUCA accounts stood at ₹17,213 Crore in FY2025. The Provision Coverage Ratio (PCR) for the Bank stood at 74.42% without AUCA and at 92.08% with AUCA as of March 2025.

Customer Experience and Centricity

Your Bank is committed to enhancing Customer Experience and is adopting new tools and techniques to measure the level of customer experience and satisfaction at various touch points. To measure customer satisfaction and loyalty on a real time basis, your Bank implemented the Customer Satisfaction Score (CSAT), Net Promoter Score (NPS) and Customer Effort Score (CES) for customers for transactions done through its Branch channel (SMS mode), BC/CSP channel and Digital channels.

Your bank’s multichannel delivery model — digital, mobile, ATM, internet, contact centre, BC outlets and branches, offers customers a wide range of choices to carry out transactions, at any time and any place, for a unique customer experience. Your Bank operates India’s largest ATM networks, with 63,791 ATMs, including 13,366 Automated Deposit cum Withdrawal Machines (ADWMs) as of March 31, 2025. With 29% market share in ATMs and ADWMs installed, your Bank handles ~34% of the country’s total cash dispensed while processing more than 1 Crore transactions daily.

As of March 31, 2025, your Bank serves over 3 Million NRI customers across the globe, offering dedicated services through 434 Specialised NRI Branches in India, foreign offices in 29 countries, and 223 Global Correspondent Banks. Additionally, your Bank has tie-ups with 45 Exchange Houses and 5 Middle Eastern Banks to facilitate remittances. The Global NRI Centres in Ernakulam and Patiala provide a one-stop solution for NRI customers’ non-financial transactions.

Technology and Innovation

Cutting edge and next-gen technology, aimed at providing responsible, secured and convenient products and services, remains the core of your Bank’s host of innovative and interwoven strategies. This helps your Bank to remain ahead of the curve as the Banker to every Indian.

Your Bank is constantly moving the needle up by integrating proven stacks of technological infrastructure with futuristic domains of new age technologies. Your Bank is now harnessing the latest technology, like Gen AI, Predictive AI/ML, Big Data, Large Language Model (LLM), etc to offer appropriate next-gen banking and financial solutions for everchanging customer preferences. Your Bank is proactively deploying robust technology as an enabler in adopting better and prudent practices across credit underwriting, treasury operations, risk management, overseas business, ALM management etc. The Bank’s share of alternate channels has increased to 98.20% as on the end of March 2025. Tie-ups with start-ups and fin-tech enterprises accelerate your Bank’s agility and resilience while helping to tap sunrise domains effectively.

To align with the evolving digital ecosystem and the Government’s vision, your Bank, being one of the major bankers for the GoI, is actively developing customised technology solutions, facilitating online service transition, enhancing efficiency and transparency. This has resulted in better ease of doing business and overall improved quality of life for citizens across transformative schemes like PM Kisan Samman Nidhi Yojana, DBT transfers, CBDT, pension payments and multiple small savings schemes to name a few.

Bank’s digital banking app YONO has completed eight years long journey since its launch in 2017. Over the years, YONO has evolved into a comprehensive platform for banking, financial, and lifestyle needs. With 8.8 Crore registered users and a 4.2 app rating, YONO underwent 164 feature enhancements in FY2025 such as Jan Nivesh, International Fund Transfer, UPI QR Cash withdrawal, Rupay Credit Card linking among others.

Functioning as ‘mini branches’ with ATM facilities, CSPs offer 33 products and services, including PMJDY account opening, cash/fund transfers, and doorstep banking with flexible hours.

Your Bank holds a dominant market share of 47% in PMJJBY, 40% in PMSBY and drives every third enrolment under APY.

To ensure efficiency, CSPs undergo regular training, risk-based audits, and InfoSec reviews. Your Bank continues to innovate and digitise BC/CSP operations for streamlined, secure and inclusive service delivery.

Strategic New Initiatives

During FY2025, your Bank has continued undertaking strategic initiatives to achieve the long-term objectives set under the overarching tenets of STEPS, with some important initiatives being:

Your Bank has strategically been expanding its digital footprint to enhance product/service perception, especially among millennials and neo-millennials. Your Bank has also launched TAB-based savings account opening for Wealth (HNIs) as also Corporate Salary Package customers, enabling Relationship Managers to open accounts at the customer’s location.

Your Bank has also increased the cash withdrawal limit at non-home branches from ₹25,000 to ₹10 Lakh for enhanced customer convenience while also introducing a nomination status enquiry through the Contact Centre via IVR. Your Bank has enabled digital reactivation of inoperative accounts through re-KYC, available at non-home branches.

Your Bank has increased claim settlement limits for deceased depositors’ heirs from ₹5 Lakh to ₹15 Lakh, including claims based on un-probated will.

Your Bank is the first Public Sector Bank to offer dedicated wealth management services, catering to affluent customers through a wide range of investment products (MF/Insurance/PMS/Bonds and AIFs, etc), duly aligned with individual risk profiles. Backed by 1,068 Relationship Managers and a tiered RM structure, SBI Wealth ensures personalised service through 247 wealth hubs across 107 centres. The value proposition includes flexible delivery channels, open architecture, and research-backed advisory services.

Your bank has launched SBI EV-Mitra, financing EV charging infra, tying up with marquee enterprises, as also start-ups in this promising and sustainable endeavour. Your Bank has undertaken Surya Shakti solar finance initiative, the special product for financing solar projects (captive use), with extended repayment tenure of 10 years, offering concessions for youth and women entrepreneurs, apart from financing Biofuels/Biogas and solar vendors related projects.

Your Bank has launched SBI Asmita in line with GoI initiative to support women entrepreneurs, with loan amounts ranging from ₹10 Lakh to ₹5 Crore.

Human resource & Skill development

Continuously investing in human capital is critical for achieving consistency in performance, employee productivity and overall resilience. Bank has retained its focus on human capital and employee training in FY2025 with an objective to impart new generation skills and create a robust talent pipeline. Further the Bank is steering its HR policy towards integrating skills with performance assessment, learning, career progression, and succession planning. During FY2025, Bank conducted a comprehensive skill development programme, Abhivriddhi – Grooming Leadership and Rebuilding State Bank Culture, for mid-management officials including Regional Managers, AGMs, and Branch Heads.

Corporate Social Responsibility

Your Bank pioneered corporate social responsibility as ‘Innovative Banking’ nearly five decades ago, establishing a legacy of empowering marginalised communities. Today, this commitment continues through strategic Corporate Social Responsibility (CSR) initiatives that balance economic growth with environmental stewardship and social progress, directly supporting national development goals.

Through both direct implementation and the SBI Foundation, your Bank executes high-impact, scalable projects across India. The Foundation’s innovative approach leverages strategic partnerships to maximise social value creation.

For FY2025, an amount of ₹610.77 Crore has been allocated for undertaking CSR activities by your Bank. Your Bank has undertaken 339 CSR initiatives in 94 Aspirational Districts during FY2025 with SBI Foundation funding 180 projects, valued at ₹485.83 Crore during FY2025 under the CSR programme.

Subsidiaries

Through its subsidiaries, your Bank provides a bouquet of financial products and services to its customers.

SBI Capital Markets Limited (SBICAPS) as a group has posted a Profit After Tax (PAT) of ₹1,205 Crore for the year ended March 31, 2025. SBICAP Securities Limited (SSL), a wholly owned subsidiary of SBI Capital Markets Limited and the broking arm of the SBI Group posted a PAT of ₹595 Crore during the year ended FY2025 as against ₹453 Crore in FY2024.

SBI General Insurance Company Limited is committed to customer-centric and market-responsive insurance solutions. The company recorded 11% growth in Gross Written Premium (₹14,140 Crore) for FY2025, and the total AUM increased to ₹21,562 Crore from ₹17,942 crore. It ranks 6^th among private players and numero-uno in personal accident segment amongst private players.

SBI Life Insurance Company Limited, with a 20.8% market share in total New Business Premium (NBP) among private players, reported an NBP of ₹35,577 Crore for the period ended March 31, 2025. The company generated a PAT of ₹2,413 Crore in FY2025 against ₹1,894 Crore in FY2024.

SBI Cards and Payment Services Limited, No. 2 player in Cards and No. 3 in Spends registered PAT of ₹1,916 Crore in FY2025.

SBI Funds Management Limited (SBIMF) is the largest player in the market. As on Mar 2025, SBIMF has a quarterly Average AUM of ₹10.73 Lakh Crore with a market share of 15.91%. The Company posted a PAT of ₹2,531 Crore for FY2025 as against ₹2,063 Crore in FY2024.

SBI Factors Limited (erstwhile SBI Global Factors Limited), a leading NBFC specialising in factoring services for domestic and international trade, registered a turnover of ₹10,828 Crore for FY2025 as compared to a turnover of ₹6,799 Crore in FY2024.

As of March 31, 2025, SBI Pension Funds Private Limited leads among 11 Pension Fund Managers (PFMs) with ₹5,14,753 Crore in Assets Under Management (AUM), with annual growth of 19%. The company reported a net profit of ₹72 Crore for FY2025.

The objective of SBI Payment Services Private Limited (SBI Payments) is to build an innovative nationwide acceptance ecosystem, enabling merchants to accept digital payments across multiple form factors. As of March 31, 2025, SBI Payments remains one of India’s largest acquirers, with 37.12 Lakh Merchant Payment Acceptance Touch Points, including 16.06 Lakh PoS machines deployed across Tier 1 to Tier 6 locations.

Awards and Recognition

The numerous awards gathered by your Bank bears testimony to the acknowledgement of your Bank’s efforts in pursuing excellence. Your Bank was recognised as ‘World’s Best Trade Finance Providers 2025’ by the Global Finance Magazine, New York, ‘5th Strongest Indian Brand 2024’ by Brand Finance India 100, and ‘Best Bank in MSME Lending’. Your Bank has been adjudged as the ‘Best Bank in India’ for the year 2024 by Global Finance and awarded the ‘Best Bank in Retail Finance Category’ by Federation of Automobile Dealers Associations of India (FADA). Your Bank was awarded the ‘ET Human Capital Awards 2025’ in 3 categories: HR Leader of the Year — Large Scale Organisations (Gold Category) for 3 years in a row (2023, 2024 and 2025); Excellence in Change Management (Gold Category); and Excellence in Health and Wellness Initiatives (Silver Category).

WAY FORWARD

As India’s largest bank, our strategic focus is on improving operational efficiency, enhancing customer experience, sustaining market leadership, strengthening human resource capabilities, supporting risk-adjusted growth, and improving profitability.

To improve operational efficiency, we are streamlining processes using automation and data-driven decision-making. Routine tasks are being digitised to reduce manual effort, while centralised systems are enabling faster and more consistent operations across branches. By analyzing workflow patterns and eliminating redundancies, we aim to reduce turnaround times, lower costs, and increase overall service reliability. These changes support a more scalable and responsive operational model suited to a large, diverse customer base.

Customer experience remains central to our growth strategy. By simplifying onboarding, enabling vernacular voice banking, and ensuring 24/7 digital support, we aim to deliver a seamless and inclusive experience across geographies, particularly for emerging segments in rural and semi-urban areas. Further, we are building omni-channel engagement models, supported by hyper-personalised offerings powered by AI.

Maintaining our market leadership requires proactive adaptation. We are forming strategic partnerships with fintechs, agritechs, and government-backed digital platforms to build a broader ecosystem. Simultaneously, we are deepening our footprint in high-potential micro-markets while modernising our brand to better resonate with digital-first generations and underserved entrepreneurs. These steps support both customer acquisition and deeper engagement.

To strengthen human resource capabilities, we are implementing structured skill development programmes aligned with evolving functional and technological requirements. Training initiatives are focused on enhancing analytical reasoning, digital literacy, and decision-making proficiency across roles. Continuous learning platforms are being introduced to facilitate upskilling at scale, while performance data is used to tailor learning paths to individual needs. These efforts aim to build a workforce that is adaptable, future-ready, and equipped to support complex banking operations in a dynamic environment.

To achieve sustainable, risk-adjusted growth, we are leveraging advanced analytics for credit underwriting, portfolio monitoring, and early warning detection. Our sector-specific risk frameworks are designed to strengthen asset quality and support responsible lending in priority areas including MSMEs and infrastructure.

Lastly, we are committed to improving our profitability profile through disciplined cost management, optimising our asset mix, and expanding fee-based income streams. With strong CASA growth, digital cross-sell capabilities, and margin-sensitive asset allocation, we are building a scalable model for sustainable returns.

Together, these strategic levers position us not just as India’s largest bank, but as its most forward-looking—balancing trust, scale, and innovation to deliver long-term value for customers and investors alike.

Yours sincerely,

Challa Sreenivasulu Setty