State Bank of India (SBI), the country's largest bank, recorded a 12.5 percent growth in net profit in the quarter ending June this fiscal year at Rs 19,160 crore, up from Rs 17,035 crore in the same quarter a year ago.
Operating profit of SBI in Q1 FY26 reflected good growth, going up 15.49 percent from the year-ago period at Rs 30,544 crore.
Net Interest Income (NII), indicative of the difference between interest received on loans and disbursed on deposits, was flat at Rs 41,072.4 crore, just shy of last year's Rs 41,126 crore.
Asset quality also witnessed an improvement in the quarter, with gross NPAs dipping by 38 basis points to 1.83 percent as on June 30. Net NPAs also fell by 10 basis points to 0.47 percent versus the same quarter of the earlier fiscal.
The bank's slippage ratio—a measure of the pace at which standard assets slip into NPAs—rose by 9 basis points year-on-year to 0.75 percent in Q1 FY26. The ratio captures new additions to NPAs as a proportion of standard advances at the beginning of the year.
SBI advances to the SME segment increased strongly by 19.10 percent year-over-year, followed by farm loans that increased by 12.67 percent. Retail personal loans and corporate advances saw growth rates of 12.56 percent and 5.7 percent respectively during the period.
The bank’s current and savings account (CASA) deposits increased by 8 percent compared to last year. Since CASA deposits are a low-cost funding source, their growth helps improve SBI’s profitability. As of June 30, 2025, SBI’s CASA ratio stood at 39.36 percent.
Wholesale bank advances rose 11.6 percent in the first quarter compared to the previous year, while domestic advances increased by 11 percent year-on-year.
Wholesale deposits also grew by 11.6 percent in Q1 FY26, with domestic advances climbing 11.96 percent. Advances from SBI’s foreign offices expanded by 14.81 percent year-on-year, pushing the total bank advances to Rs 42.5 lakh crore.
On Friday afternoon, SBI shares were trading near Rs 795.35 per share.
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