How Did SBI Achieve a 12.5% Increase in Q1 Net Profit?
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Synopsis
In a significant financial update, the State Bank of India (SBI) reported a remarkable 12.5% net profit increase for Q1 FY26, reaching Rs 19,160 crore. This article delves into SBI's impressive growth metrics, enhanced asset quality, and robust advances across various sectors, showcasing its strong market position and performance amidst a competitive landscape.
Key Takeaways
- SBI's net profit: Increased by 12.5% to Rs 19,160 crore.
- Operating profit growth: Rose by 15.49% year-on-year.
- Asset quality: Gross NPAs improved to 1.83%.
- CASA deposits: Grew by 8%, enhancing profitability.
- Strong advances: SME and agricultural advances saw significant growth.
Mumbai, Aug 8 (NationPress) The largest financial institution in India, State Bank of India (SBI), announced a remarkable 12.5% rise in its net profit, totaling Rs 19,160 crore for the April-June quarter of this fiscal year. This figure is an increase from Rs 17,035 crore in the same period last year.
SBI’s operating profit for Q1 FY26 surged by an impressive 15.49% year-on-year, reaching Rs 30,544 crore.
The Net Interest Income (NII), which indicates the difference between interest earned on loans and interest paid on deposits, remained stable at Rs 41,072.4 crore, slightly down from Rs 41,126 crore recorded in the previous year.
Asset quality also showed improvement, with gross NPAs at the end of the April-June quarter declining by 38 basis points to 1.83%. Net NPAs fell by 10 basis points to 0.47% compared to the same quarter last year.
SBI’s slippage ratio for Q1 FY26 improved by 9 basis points year-on-year, now at 0.75%. This ratio measures how quickly a bank's good loans turn into non-performing assets (NPAs).
The bank experienced robust growth in its SME advances, which increased by 19.10% year-on-year, while agricultural advances rose by 12.67%. Retail personal and corporate advances also saw increases of 12.56% and 5.7% respectively.
SBI’s current and savings accounts (CASA) deposits rose by 8% compared to last year, with a CASA ratio of 39.36% as of June 30, 2025.
Wholesale bank advances increased by 11.6% during the April-June quarter compared to the previous year, and domestic advances grew by 11%.
Additionally, wholesale bank deposits rose by 11.6% year-on-year, while domestic advances showed an 11.96% increase. SBI’s foreign office advances expanded by 14.81%, with total wholesale bank advances now at Rs 42.5 lakh crore.
On Friday afternoon, SBI shares traded at approximately Rs 795.35 each.
Point of View
The latest financial results from SBI reflect a robust and resilient banking sector in India. As the largest lender, SBI's impressive growth in net profit and asset quality improvements not only underscores its operational strength but also indicates a positive trend for the overall economy. This performance is crucial for maintaining public trust and confidence in the banking system.
NationPress
20/08/2025
Frequently Asked Questions
What was SBI's net profit for Q1 FY26?
SBI reported a net profit of Rs 19,160 crore for the April-June quarter of FY26, marking a 12.5% increase from Rs 17,035 crore in the same period last year.
How much did SBI's operating profit grow?
SBI's operating profit for Q1 FY26 grew by 15.49% year-on-year, reaching Rs 30,544 crore.
What is SBI's current CASA ratio?
As of June 30, 2025, SBI's CASA ratio stands at 39.36%, reflecting an 8% increase in CASA deposits from the previous year.
What improvements were seen in SBI's asset quality?
SBI's gross NPAs decreased to 1.83%, a decline of 38 basis points, while net NPAs improved to 0.47%, down by 10 basis points compared to the previous year.
How did SBI's advances perform in Q1 FY26?
SBI saw substantial growth in various advances, including a 19.10% increase in SME advances and a 12.67% rise in agricultural advances.
