The two top PSU banks have released their financial results, and they seem to confuse investors about which performed better. In this article, we will dive into a deep comparison between Bank of Baroda and State Bank of India.
Financial Highlights
State Bank of India reported a net interest income of Rs 1,66,965 crore in FY25, up 4.43 percent from its FY24 income of Rs 1,59,876 crore. Further, it reported a net profit of Rs 70,901 crore in FY25, up 16.08 percent, from its Q4 FY24 net profit of Rs 61,077 crore.
SBI’s net interest margin (NIM) declined to 3.09 percent in FY25 from 3.28 percent in FY24. A similar downtrend is seen in quarterly performance as well, as it reported a net interest margin of 3.30 percent in Q4 FY24 and 3 percent in Q4 FY25.
On the other hand, Bank of Baroda reported a net interest income of Rs 45,659 crores in FY25, up by 2.1 percent from Rs 44,722 crores in FY24. Further, it reported a net profit of Rs 19,581 crores in FY25, up by 10.1 percent from its FY24 collection of Rs 17,789 crores.
BOB’s net interest margin (NIM) declined to 3.02 percent in FY25 from 3.18 percent in FY24. A similar downtrend is seen in quarterly performance as well, as it reported a net interest margin of 3.27 percent in Q4 FY24 and 2.86 percent in Q4 FY25.
Deposits and Advances
SBI’s deposit surged by 9.48 percent as it recorded a total deposit of Rs 53,82,190 crores on FY25, as compared to 49,16,077 crores in FY24. Its CASA currently stands at 39.97 percent.
On the other hand, SBI’s advances surged by 12.03 percent as it recorded a gross advances of Rs 42,20,703 crores on FY25, as compared to 37,67,535 crores on FY24.
BOB’s deposits surged by 10.3 percent as it recorded a total deposit of Rs 14,72,035 crores on March 31, 2025, as compared to 13,35,136 crores on the same month of the previous year. Its domestic CASA ratio declined by 106 bps YoY to 39.97 percent in March 2025 from 41.03 percent in the previous year.
On the other hand, BOB’s advances surged by 12.8 percent as it recorded a total advances of Rs 12,30,461 crores on March 31, 2025, as compared to 10,90,506 crores on the same month of the previous year.
Asset Quality
As of Q4 FY25, SBI has a gross NPA ratio of 1.82 percent and a net NPA ratio of 0.47 percent. On the other hand, BOB has a gross NPA ratio of 2.26 percent and a net NPA ratio of 0.58 percent.
As of Q4 FY25, SBI has a slippage ratio of 0.55 percent and a credit cost of 0.47 percent. On the other hand, BOB has a slippage ratio of 1 percent and a credit cost of 0.44 percent.
Conclusion
SBI has reported superior overall performance compared to Bank of Baroda in FY25. Although BOB exhibited marginally superior business growth rates, SBI exhibited superior growth in profitability, superior asset quality, and superior CASA deposits.
Written by Satyajeet Mukherjee
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