The State Bank of India (SBI) on Friday announced its first quarter FY26 results, recording a net profit of ₹19,160 crore and a year-on-year increase of 12.48%, based on the bank’s filing with the stock exchanges.

The operating profit increased by 15.49% year-on-year to ₹30,544 crore. SBI’s return on assets (ROA) was 1.14%, while return on equity (ROE) stood at 19.7% during the quarter. However, the bank’s net interest income (NII) experienced a slight decline of 0.13% year-on-year, with the net interest margin (NIM) for the entire bank at 2.9% and domestic NIM at 3.02%, according to the SBI filing on exchanges.

The lender’s balance sheet steadily expanded, with total bank advances rising by 11.61% YoY to ₹42.5 lakh crore, according to the results. Domestic advances increased by 11.06% YoY, while foreign office advances surged by 14.81% YoY. Segment-wise, SME advances grew by 19.1% YoY, followed by agricultural loans at 12.67% YoY. Conversely, retail personal loans and corporate advances increased by 12.56% and 5.7% YoY, respectively.

Total deposits increased by 11.66% YoY, with current and savings account (CASA) deposits rising by 8.05% YoY. The CASA ratio was 39.36% as of 30 June 2025, according to the SBI filing on exchanges.

Asset quality also improved, with the gross non-performing assets (NPA) ratio falling to 1.83%, a 38-basis-point improvement YoY. The net NPA ratio eased to 0.47%, down 10 basis points YoY. Provision coverage ratio (PCR) stood at 74.49%, while PCR including AUCA (assets under collection accounts) was at 91.71%. The slippage ratio improved by 9 basis points YoY to 0.75%, and credit cost for the quarter was contained at 0.47%, as per the SBI filing report.

The bank maintained a capital adequacy ratio (CAR) of 14.63% at the end of Q1FY26, according to SBI's results. Alternative channels, including digital banking, continued to drive customer acquisition, with 66% of new savings bank accounts opened through SBI’s YONO platform during the quarter.

The share of alternative channels in total transactions increased from approximately 98.2% in Q1 FY25 to 98.6% in Q1 FY26. This indicates that the bank is increasingly focusing on digital adoption, as per the SBI filing on exchanges.

Shares of State Bank of India closed 0.33% lower at ₹802.50 on the NSE ahead of the results announcement on Friday.