SBI Q1 Results: Net Profit Jumps 12.5% YoY To Rs 19,160.44 Cr Driven By Healthy Interest Income

On Friday, August 8, State Bank of India (SBI) announced a strong Q1FY26 performance. The bank's standalone net profit increased 12.5% YoY to Rs 19,160.44 crore from Rs 17,035.16 crore, fueled by strong interest income growth and better asset quality. According to SBI, its total income rose from Rs 1,22,687.85 crore in the same quarter last year to Rs 1,35,341.56 crore in the quarter under review. A modest rise in provisions to RS 4,759.20 crore from Rs 3,449.42 crore countered the increase in operating expenses, which climbed to Rs 27,873.70 crore in the June 2025 quarter from Rs 25,838.74 crore in the June 2024 quarter.

With an 11.61% rise in total advances to Rs 42,54,516 crore and robust growth in domestic retail personal loans (up 12.56%) and home loans (up 15.05%), the bank's interest income climbed 5.80% YoY to Rs 1,17,996 crore. While domestic NIM shrank by 33 basis points year on year to 3.02%, net interest income was only slightly lower at Rs 41,072 crore, down 0.13% YoY.

Although the CASA ratio dropped by 134 basis points YoY to 39.06%, deposits climbed 11.66% YoY to Rs 54,73,254 crore, driven by a 14.23% growth in domestic term deposits. With GNPA falling to 1.83% and NNPA to 0.47%, asset quality improved.

Domestic advances grew 11.06% YoY, while whole bank advances grew 11.61% YoY. Advances from the whole bank total Rs 42.5 lakh crores. With a 12.56% rise in domestic retail personal loans to Rs 15,39,878 crore, including a 15.05% growth in home loans to Rs 8,50,856 crore, SBI's gross advances as of June 2025 were Rs 42,54,516 crore, representing an 11.61% year-on-year and 0.80% sequential growth.

Domestic corporate advances dropped 3.00% QoQ but climbed 5.70% YoY to Rs 12,03,430 crore. In terms of liabilities, deposits increased 11.66% year on year and 1.69% quarter on quarter to Rs 54,73,254 crore. Domestic term deposits jumped 14.23% YoY to Rs 31,86,346 crore, while domestic CASA deposits surged 8.05% YoY to Rs 20,68,527 crore. With a move toward term deposits, the CASA ratio was 39.36%, down 134 basis points year on year and 61 basis points quarter on quarter.

With the net NPA ratio falling 10 basis points to 0.47% and the gross NPA ratio growing 38 basis points YoY to 1.83%, SBI's asset quality continued to improve in Q1FY26. When AUCA accounts are taken into consideration, the bank's strong Provision Coverage Ratio (PCR) of 74.49% improves to 91.71%. The credit cost for the quarter was a reasonable 0.47%, and slippages were effectively managed, with the slippage ratio improving by 9 bps YoY to 0.75%.