SBI Q1 FY27 net profit rises 10.2% to ₹21,121 crore; asset quality at multi-year best
Synopsis
SBI's Q1 FY27 scorecard is a clean sweep: profit up 10.2%, NII up nearly 15%, bad-loan provisions slashed by a third, and gross NPAs at their best level in years. For India's largest lender, the numbers signal that the long clean-up of its balance sheet is paying off — just as credit demand accelerates.
Key Takeaways
SBI reported a net profit of ₹21,121 crore in Q1 FY27 , up 10.23% year-on-year from ₹19,160 crore .
Net Interest Income (NII) rose 14.9% to ₹46,992 crore ; operating profit climbed 9.8% to ₹33,529 crore .
Gross NPA ratio improved to 1.47% in June 2026, down from 1.83% a year earlier — a multi-year low.
Provisions for bad loans fell 32% year-on-year to ₹3,359 crore .
Whole-bank advances grew 19% year-on-year; overseas advances rose 21.38% in rupee terms.
Domestic NIM stood at 3% ; whole-bank NIM at 2.86% .
State Bank of India (SBI), the country's largest public sector lender, on Friday, 7 August 2026, reported a 10.23% year-on-year rise in net profit for the first quarter of FY27, powered by strong interest income growth, robust loan expansion, and a sharp fall in bad-loan provisions. The bank posted a net profit of ₹21,121 crore for the April–June 2026 quarter, up from ₹19,160 crore in the corresponding period of FY26.
Key Financial Highlights
Net Interest Income (NII) — the difference between interest earned on loans and interest paid on deposits — climbed 14.9% year-on-year to ₹46,992 crore. Operating profit rose 9.8% to ₹33,529 crore, according to the bank's regulatory filing with the stock exchanges.
Net Interest Margin (NIM) also improved, with domestic NIM standing at 3% and whole-bank NIM at 2.86% — reflecting a near 15% improvement over the year-ago level.
Asset Quality Improves Sharply
Asset quality was a standout feature of the quarterly results. Gross Non-Performing Assets (NPAs) as a percentage of total advances improved to 1.47% at the end of June 2026, compared with 1.83% a year earlier and 1.49% in the preceding quarter — the best reading in several years.
In absolute terms, gross NPAs fell to ₹74,272 crore from ₹78,039 crore in the year-ago period. Provisions for bad loans declined 32% year-on-year to ₹3,359 crore, down from ₹4,934 crore in Q1 FY26 — a reduction that directly boosted the bottom line.
Loan Growth Remains Robust
Credit expansion stayed strong across the board. Whole-bank advances grew 19% year-on-year, with domestic advances up 18.15%. Overseas offices posted even sharper growth — advances rose 21.38% in rupee terms and 9.97% in dollar terms, signalling healthy demand from both domestic and international borrowers.
What the Chairman Said
CS Setty, Chairman of State Bank of India, said the bank's strategic direction continues to be guided by a philosophy of 'Digital First, Customer First and Nation Always.' He added: 'During the quarter, we continued to simplify banking by expanding our flagship Operations Process Re-engineering project, SARAL, with the objective of making customer journeys faster, simpler and more convenient.'
What This Means for India's Banking Sector
SBI's results arrive at a time when India's broader banking system is navigating a moderating rate environment and tightening liquidity. The bank's ability to grow NII by nearly 15% while simultaneously reducing NPA provisions by nearly a third underscores the resilience of its balance sheet. Notably, this is the fourth consecutive quarter in which SBI's gross NPA ratio has trended downward — a pattern that analysts say reflects both tighter underwriting standards and an improving macroeconomic backdrop. The next key marker will be whether credit costs remain contained as the RBI's rate cycle evolves in the second half of FY27.
Point of View
It is betting that the credit cycle stays benign. If global headwinds or domestic rate volatility trigger fresh slippages in the second half of FY27, that bet could look premature. The 19% loan growth is also worth watching — at that pace, capital adequacy will come under pressure sooner than the market is pricing in.
NationPress
7 Aug 2026
Frequently Asked Questions
What was SBI's net profit in Q1 FY27?
SBI reported a net profit of ₹21,121 crore in Q1 FY27 (April–June 2026), a 10.23% rise year-on-year from ₹19,160 crore in Q1 FY26. The growth was driven by higher interest income, strong loan expansion, and a sharp fall in bad-loan provisions.
How did SBI's asset quality change in Q1 FY27?
SBI's gross NPA ratio improved to 1.47% at the end of June 2026, down from 1.83% a year earlier and 1.49% in the preceding quarter. In absolute terms, gross NPAs fell to ₹74,272 crore from ₹78,039 crore in Q1 FY26.
What happened to SBI's loan growth in Q1 FY27?
Whole-bank advances grew 19% year-on-year in Q1 FY27. Domestic advances rose 18.15%, while overseas advances increased 21.38% in rupee terms and 9.97% in dollar terms.
What is SBI's SARAL project?
SARAL is SBI's flagship Operations Process Re-engineering project aimed at making customer journeys faster, simpler, and more convenient. Chairman CS Setty said the bank expanded the project during Q1 FY27 as part of its 'Digital First, Customer First' strategy.
How did SBI's Net Interest Income perform in Q1 FY27?
SBI's Net Interest Income (NII) rose 14.9% year-on-year to ₹46,992 crore in Q1 FY27. Net Interest Margin (NIM) also improved, with domestic NIM at 3% and whole-bank NIM at 2.86%.
