Treasury gains cushion SBI in Q4

Unpredictable trend SBI's huge treasury operations with volatile income lead to profit swings.

- Manish Joshi

State Bank of India's March quarter (Q4FY25) results would have been a flop show had it not been for one-off and treasury gains.

The public sector lender benefited from a revaluation of security receipts issued by National Asset Reconstruction Co. Ltd, which included ₹3,850 crore from a big account, booked in treasury income.

Given its largest treasury operations in the country, SBI's pinning hopes on further easing of bond yields, which would enable the bank to make more capital gains in the portfolio.

Bond prices have been gaining since the Reserve Bank of India began cutting rates in February. Bond prices have an inverse relationship with bond yields.

SBI is banking on treasury gains to maintain return on average assets of 1% for FY26 as its net interest margin (NIM) continues to be under pressure.