The State Bank of India (SBI) has posted a solid performance for the first quarter of FY26, reporting a net profit of ₹19,160 crore, up 12% from the same period last year. This result surpassed market expectations, which had estimated earnings closer to ₹17,166 crore.
Revenue & Margins
Total income for the quarter reached ₹1.35 lakh crore, reflecting a year-on-year growth of 10.31%. Net interest income (NII) held steady at ₹41,072 crore, with only a slight dip of 0.13% compared to last year. However, margins faced pressure, with the overall net interest margin (NIM) slipping 32 basis points to 2.90%, while domestic NIM decreased 33 basis points to 3.02%.
Operational Highlights
Operating profit rose by 15.49% to ₹30,544 crore, supported by a sharp 55.4% increase in non-interest income, which stood at ₹17,346 crore. Return on assets improved to 1.14%, while return on equity eased slightly to 19.70%. The cost-to-income ratio showed progress, improving to 47.71% from 49.42% in Q1 FY25.
Business Growth
SBI’s loan book expanded 11.61% year-on-year, reaching ₹42.55 lakh crore. Growth was broad-based, with retail personal loans up 12.56%, SME lending up 19.10%, agricultural credit up 12.67%, and corporate loans increasing by 5.70%. Deposits also saw healthy growth of 11.66%, totaling ₹54.73 lakh crore. Current account deposits rose sharply by 30.69%, while savings deposits increased by 4.71%. The CASA ratio came in at 39.36%, slightly below last year’s 40.70%.
Asset Quality & Capital Position
The bank continued to strengthen its asset quality, with the gross NPA ratio improving to 1.83% from 2.21% a year ago. Net NPA fell to 0.47%, down from 0.57%. The provision coverage ratio stood at 74.49% (91.71% including accounts under collection), while credit costs were steady at 0.47%.
SBI maintained a strong capital position, with a capital adequacy ratio (CRAR) of 14.63% as of June 30, 2025. Including the Q1 FY26 profit, CRAR improves to 15.16%, and the CET-1 ratio moves up to 11.63% from 11.10%.
Outlook
With a strong capital base, improving asset quality, and consistent business growth, SBI has set a positive tone for the rest of FY26. The performance also highlights the bank’s resilience amid margin pressures and competitive lending conditions.
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IMAGE: Reuters
