SBI Q1 Profit Up 13.7% to ₹24,113 Crore on Improved Core Income, Lower Provisions

State Bank of India (SBI) reported its first-quarter results for the financial year 2026-27 on Friday. The country's largest lender posted a consolidated net profit of ₹24,113 crore for the three months ended June 30, 2026, up 13.73 per cent from the corresponding period a year ago.

On a standalone basis, which covers the bank's domestic operations, net profit increased 10.23 per cent to ₹21,121.22 crore, compared with ₹19,160.44 crore in the April-June quarter of 2025. The consolidated figures also include contributions from SBI's subsidiaries and associates.

The core net interest income (NII) rose nearly 15 per cent to ₹46,992 crore, helped by an 18.63 per cent growth in gross advances. The bank's domestic net interest margin (NIM) — a key measure of lending profitability — came in at 3 per cent for the quarter, down from 3.07 per cent a year ago. On a quarter-on-quarter basis, however, the margin expanded by 7 basis points, suggesting a gradual recovery from the March quarter.

Non-interest income, which includes fees, commissions and trading gains, declined 9 per cent to ₹15,293 crore in the June quarter. The decline was primarily due to a 70 per cent contraction in foreign exchange and derivatives income.

On the liability side, deposits grew 9.73 per cent, trailing the pace of credit expansion. The share of low-cost current account and savings account (CASA) deposits decreased by 0.12 percentage points year-on-year to 39.36 per cent.

SBI Chairman C.S. Setty told reporters that the bank aims to achieve credit growth of 14–15 per cent during FY27, supported by deposit growth of 10–11 per cent. He also said the bank has mobilised $6 billion under the Foreign Currency Non-Resident (Bank) [FCNR(B)] window, a special programme that allows banks to attract foreign currency deposits from non-resident Indians at concessional rates. The bank expects this figure to reach up to $10 billion before the window closes in September.

Asset quality metrics improved during the quarter. Fresh slippages — new loans turning non-performing — stood at ₹7,046 crore, lower than ₹7,945 crore a year ago. However, they were higher than the ₹5,521 crore reported in the preceding March quarter. The gross non-performing asset (NPA) ratio improved to 1.47 per cent as of June 30, from 1.49 per cent on March 31 and 1.83 per cent a year earlier.

Nevertheless, the bank reported a rise in stressed assets in the early delinquency bucket. Loans overdue by 31 to 89 days increased to ₹4,174 crore from ₹3,350 crore at the end of March, indicating a potential uptick in stress that may need close monitoring.

Provisions for non-performing assets declined to ₹3,359 crore in the June quarter, from ₹4,934 crore in the year-ago period, but were slightly higher than the ₹3,140 crore set aside in the March quarter.

The bank's overall capital adequacy ratio stood at 15.67 per cent as on June 30, comfortably above regulatory requirements, with common equity tier-1 capital at 12.89 per cent.

Shares of SBI settled at ₹1,096.05 on the BSE, up 1.03 per cent, reflecting positive investor sentiment following the earnings announcement.