SBI share price dips after Q3 results 2025; should you buy the dip?

State Bank of India (SBI) reported impressive financial results for Q3 FY25, with a remarkable 84% year-on-year (YoY) increase in net profit, reaching ₹16,891 crore, up from ₹9,164 crore in the same period last year. The bank’s strong performance surpassed analyst expectations, with net interest income (NII) rising 4% to ₹41,446 crore, compared to ₹39,816 crore in the previous year. Employee expenses also saw a 17% reduction to ₹16,074 crore.

Despite the robust financial results, SBI's share price dipped by 1.58%, closing at ₹753.95 on February 6, 2025. This decline comes even after SBI’s significant improvement in asset quality, with the gross non-performing asset (NPA) ratio decreasing to 2.07% from 2.13% in the previous quarter, while the net NPA ratio remained stable at 0.53%.

The lender’s deposits grew by 9.81% to ₹52.3 lakh crore, while domestic loans saw a healthy YoY growth of 14.06%. SBI's whole-bank net interest margin (NIM) for Q3 FY25 stood at 3.01%, with domestic NIM at 3.15%.

Analysts, including Anshul Jain, Head of Research at Lakshmishree Investment and Securities, have highlighted SBI’s positive performance with rising operating profits, improved return on assets (ROA) and return on equity (ROE), and a strong CASA ratio of 39.20%.

While the stock saw a dip, some investors may view this as a buying opportunity given the bank's strong fundamentals and consistent growth trajectory.