SBI Q1 net profit rises 10% to Rs 21,121 crore; NII jumps 15%
Mumbai, August 7
State Bank of India reported a 10.23 per cent year-on-year rise in net profit to Rs 21,121 crore for the first quarter of FY2026-27, supported by strong growth in net interest income and advances, along with improvement in asset quality.
The country's largest lender had reported a net profit of Rs 19,160 crore in the corresponding quarter of the previous financial year. Sequentially, profit rose 7.30 per cent from Rs 19,684 crore in the March quarter.
Net Interest Income (NII), the difference between interest earned and interest paid by a bank, increased 14.88 per cent year-on-year to Rs 46,992 crore during the quarter from Rs 40,907 crore a year earlier. Operating profit grew 9.77 per cent to Rs 33,529 crore.
SBI's domestic net interest margin (NIM) stood at 3 per cent in Q1 FY27, improving by 7 basis points from 2.93 per cent in the preceding quarter. However, it was marginally lower than 3.01 per cent recorded in the year-ago period.
The bank continued to record strong credit growth, with gross advances rising 18.63 per cent year-on-year to Rs 50.47 lakh crore as of June 2026. Domestic advances grew 18.15 per cent, while corporate advances increased 18.05 per cent.
Retail, agriculture and MSME (RAM) advances grew 18.20 per cent, with all segments recording double-digit growth. Agriculture advances rose 25.43 per cent, SME advances increased 22.33 per cent and retail personal advances grew 15.15 per cent.
Deposits increased 9.73 per cent year-on-year to Rs 60.06 lakh crore. CASA deposits grew 9.30 per cent, while the CASA ratio stood at 39.24 per cent as of June-end. SBI said its overall business crossed Rs 110 lakh crore during the quarter, with deposits and advances crossing Rs 60 lakh crore and Rs 50 lakh crore, respectively.
Asset quality also improved during the quarter. The gross non-performing asset (NPA) ratio declined by 36 basis points year-on-year to 1.47 per cent from 1.83 per cent, while the net NPA ratio improved by 9 basis points to 0.38 per cent from 0.47 per cent.
The bank also said more than 64 per cent of savings bank accounts were opened digitally through YONO during Q1 FY27, while alternate channels accounted for around 98.8 per cent of its total transactions.
— ANI
Reader Comments
Great to see asset quality improving! NPA ratio down to 1.47% is a solid sign. SBI is truly the backbone of Indian banking, especially in rural areas. The agriculture advance growth of 25% shows they're committed to the farming community. 👏
Profit is good but the NIM at 3% is still below the previous year. Also, while advances grew 18%, deposits only grew 9.7%. This mismatch is concerning - where is the money coming from? Looks like they're relying on bulk deposits which might not be sustainable. Just my observation.
India's banking sector is on a roll! SBI crossing Rs 110 lakh crore business is a huge milestone. And 98.8% transactions through digital channels shows how far we've come. Proud to be an SBI customer since 15 years! 🎉
Impressive quarterly performance. The improvement in asset quality is particularly noteworthy. Though I'd like to see more emphasis on reducing the corporate exposure concentration and increasing retail lending further. Overall, a robust quarter for the largest Indian bank.
The stock market will definitely react positively to this. But as a young professional, I wish SBI would focus more on customer service. Their YONO app is good but the branch experience leaves much to be desired. Profits aside, please improve the customer experience too!
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