SBI Earns Record $9.2 Bn Profit, Small Digital User Base Drives Big Gains

New Delhi: State Bank of India (SBI) reported a record net profit of USD 9.2 billion for the fiscal year ending March 2025. With this, SBI became only the third Indian company, after Reliance Industries and ONGC, to enter the Global Top 100 companies by net profit.

Small Digital Group, Big Impact

Though SBI serves over 500 million accounts, only about 74 million customers use its digital platform, YONO (You Only Need One). That’s only 14 per cent of the customer base. Yet, this small group is behind most of the bank's profit growth.

Rajendra Srivastava, a top Indian marketing expert, called this a “paradox” – a small digital group driving big results, while the rest are mostly low-margin accounts.

YONO: More Than a Banking App

Launched in 2017, YONO has become a key growth driver. It has crossed:

- 74 million users

- Rs 3.2 lakh crore in loans disbursed

- Over 10 million daily logins

- 65 per cent of SBI's savings transactions

YONO offers more than banking. Users can open accounts, apply for loans, invest, shop, book travel, and access government services – all in one app.

Traditional Branches Need Rethinking

SBI has 20,000 branches and 220,000 employees, which are costly to maintain. Many accounts were opened for financial inclusion, but are now dormant or low-balance, increasing costs.

Srivastava says the Digital Public Infrastructure like Aadhaar, UPI, and mobile internet has made physical branches less necessary. He believes SBI should re-evaluate its large network and invest more in digital services.

Lower Valuation Despite High Profit

Even with strong profits, SBI's market valuation is lower than private banks. Its Price-to-Book (P/B) ratio is 1.4, compared to:

- HDFC Bank at 2.8

- ICICI Bank at 3.3

This is because investors see private banks as leaner, more efficient, and more digital.

Future Lies in Digital First

Srivastava says SBI must make YONO the core of its strategy. By encouraging more customers to go digital, it can:

Cut costs

- Close unneeded branches and ATMs

- Increase profits through cross-selling

- Serve rural and urban areas without more spending

He believes SBI can double its market value by doubling YONO usage – without increasing its branch network.

Leading by Example

SBI’s success can inspire other public companies. It shows that profit, efficiency, and social inclusion can go hand-in-hand. If SBI continues this digital journey, it can stay ahead in global banking while supporting India’s growth goals.

(With PTI Inputs)

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