The State Bank of India (SBI), the country’s largest public sector bank, has reported impressive financial results for the first quarter of the fiscal year 2026 (Q1 FY26). The bank earned a net profit of Rs 19,160.44 crore, marking a 12% increase compared to the same period last year when it posted a profit of Rs 17,035.16 crore.
This performance also exceeded market expectations. Analysts had predicted a net profit of Rs 17,095 crore for the bank. In comparison, SBI’s profit for the last quarter of FY2025 was Rs 18,642.59 crore.
On a consolidated basis (which includes its subsidiaries), SBI’s profit reached Rs 21,626.64 crore, up from Rs 19,680.80 crore in the first quarter of FY2024.
Key Financial Highlights:
- Net Interest Income (NII): The bank earned Rs 41,072.88 crore in interest income during the quarter, similar to the amount from the same period last year. NII is a key indicator of a bank’s profitability.
- Total Income: SBI’s total income for the quarter increased to Rs 1,35,342 crore, up from Rs 1,22,688 crore in Q1 FY2024.
- Net Interest Margin (NIM): This key metric, which shows the difference between the interest the bank earns and what it pays on deposits, slightly declined to 3.02% from 3.35% last year.
Asset Quality:
SBI’s asset quality remained stable with its Gross Non-Performing Assets (GNPA) at 1.83% of its total loans, a slight increase from 1.82% in the previous quarter but a significant improvement from 2.21% in June 2024.
The Net Non-Performing Assets (NNPA) remained unchanged at 0.47%, reflecting the bank’s solid loan book.
Other Key Metrics:
- Provisions: The bank set aside Rs 4,759 crore as provisions for bad loans, higher than the Rs 3,449 crore allocated in the same quarter last year.
- Capital Adequacy Ratio: The bank’s capital adequacy ratio, a measure of financial strength, improved to 14.63% from 13.86% in the previous year.
- Deposits: SBI’s total deposits grew by nearly 12% year-on-year to Rs 54.73 lakh crore, compared to Rs 49.01 lakh crore last year.