The State Bank of India (SBI) reported a strong start to the financial year, posting a standalone net profit of Rs 21,121.22 crore for the April-June quarter (Q1 FY27), a 10.23 per cent increase from Rs 19,160.44 crore recorded in the same period last year.
The country's largest lender also reported healthy growth in interest earnings. Interest income rose 14.88 per cent year-on-year to Rs 46,992 crore, compared with Rs 40,907 crore in the corresponding quarter of the previous financial year.
Asset quality improves despite higher provisions
SBI's asset quality showed marginal improvement during the quarter.
The gross non-performing asset (GNPA) ratio declined to 1.47 per cent from 1.49 per cent in the previous quarter, while the net NPA ratio improved to 0.38 per cent, down from 0.39 per cent.
The bank increased its provisions to Rs 5,047 crore, higher than both the preceding quarter and the year-ago period. However, the credit cost remained unchanged on a sequential basis at 0.27 per cent, while improving from 0.47 per cent a year earlier.
The domestic net interest margin (NIM) stood at 3 per cent, while the whole-bank NIM improved by five basis points quarter-on-quarter to 2.86 per cent.
Business crosses Rs 110 lakh crore
SBI's total business crossed the Rs 110 lakh crore mark during the June quarter, supported by growth in both deposits and lending.
Total deposits rose 9.73 per cent year-on-year to Rs 60.06 lakh crore, while total advances crossed Rs 50 lakh crore. CASA deposits increased to Rs 22.61 lakh crore, with the CASA ratio standing at 39.24 per cent.
Within the loan portfolio, retail personal loans grew 15.15 per cent, corporate advances rose 18.05 per cent, while SME and agriculture lending recorded growth of 22.33 per cent and 25.43 per cent, respectively.
Capital position strengthens, digital adoption rises
The bank also reported an improvement in its capital position, with the capital-to-risk weighted assets ratio (CRAR) rising to 15.67 per cent, while the Common Equity Tier-1 (CET-1) ratio improved to 12.89 per cent.
SBI said digital banking continued to gather pace during the quarter. More than 64 per cent of new savings accounts were opened through the YONO platform, while nearly 98.8 per cent of customer transactions were carried out through alternate digital channels, reflecting the bank's continued focus on digital services.