SBI Q1 profit rises 10% to ₹21,121 crore as asset quality improves; shares climb 3%

State Bank of India (SBI), the country's largest commercial lender, reported a 10.23% year-on-year (YoY) rise in standalone net profit to ₹21,121 crore for the quarter ended June 30, 2026 (Q1 FY27), compared with ₹19,160 crore in the corresponding quarter last year.

Sequentially, net profit rose 7.3% from ₹19,684 crore reported in the March quarter, aided by healthy loan growth, higher net interest income (NII), and improving asset quality, the lender said in its earnings report.

The PSU lender's net interest income (NII) rose 14.88% YoY to ₹46,992 crore from ₹40,907 crore a year earlier. Interest income for the quarter increased 8.54% YoY to ₹1.28 lakh crore, while interest expenses rose 5.17% YoY to ₹80,904 crore.

The bank posted an operating profit of ₹33,529 crore in Q1 FY27, up 9.77% from ₹30,544 crore in the year-ago quarter.

SBI's domestic net interest margin (NIM) improved to 3.00% in Q1 FY27 from 2.93% in the March quarter, while the whole-bank NIM increased to 2.86% from 2.81% sequentially.

On the business front, gross advances grew 18.63% YoY to ₹50.47 lakh crore, crossing the ₹50 lakh crore milestone. Domestic advances rose 18.15%, while overseas advances increased 21.38% in rupee terms.

Total deposits increased 9.73% YoY to ₹60.06 lakh crore, taking the bank's overall business past the ₹110 lakh crore mark. CASA deposits grew 9.30%, while the CASA ratio stood at 39.24% at the end of June.

SBI also reported an improvement in asset quality during the quarter. The gross non-performing asset (GNPA) ratio declined to 1.47%, improving by 36 basis points from a year ago, while the net NPA (NNPA) ratio improved by 9 basis points to 0.38%.

The bank's provision coverage ratio (PCR) stood at 74.20%, rising to 91.82% after including accounts written off under AUCA. The slippage ratio improved to 0.57% from 0.75% a year earlier, while the credit cost remained low at 0.27%. Loan-loss provisions declined 31.92% YoY to ₹3,359 crore, supporting the bank's profitability.

On the digital front, the bank said more than 64% of savings bank accounts opened during the quarter were sourced through YONO, while alternate channels accounted for nearly 98.8% of total transactions, up from around 98.6% a year ago.

Following the earnings announcement, SBI shares rose 2.96% to ₹1,117, taking the bank's market capitalisation to ₹10.31 lakh crore.