SBI Q1 Net Profit Rises 12%, NIM Flat on High Interest Expenses

The State Bank of India (SBI) on Friday reported a 12.48% year-on-year (YoY) growth in net profit for the quarter ending June 30, 2025. Net profit for Q1 FY26 stood at ₹19,160 crore, compared to ₹17,035 crore in the year-ago quarter. Sequentially, profit rose 2.78%. Total income for the quarter increased 10.31% to ₹1.35 lakh crore.

The public lender earned interest income of ₹1,17,996 crore during the quarter under review, up 6% from ₹1,11,526 crore in the same period last year.

However, Net Interest Income (NII) saw a marginal decline of 0.13% YoY and 3.98% quarter-on-quarter (QoQ), coming in at ₹41,072 crore, as interest expenses rose 9.27% YoY to ₹76,923 crore. Net Interest Margin (NIM) for domestic operations compressed by 33 basis points (bps) YoY and 13 bps QoQ, settling at 3.02%.

SBI shares were trading marginally higher by 0.14% at ₹806.35 on the BSE at 3:19 PM.

The net profit growth was driven by efficiency in operating income and controlled operating expenses, the company said in its filing to the exchanges. Operating profit rose 15.49% to ₹30,544 crore during the quarter.

On the balance sheet front, the bank’s gross advances rose 11.61% YoY and 0.80% QoQ to ₹42.54 lakh crore as of June 2025. Within this, domestic retail personal loans grew 12.56% YoY to ₹15.39 lakh crore, with home loans rising 15.05% YoY to ₹8.51 lakh crore. Domestic corporate advances dipped 3.00% QoQ but still registered a 5.70% YoY growth. Total deposits increased 11.66% YoY and 1.69% QoQ to ₹54.73 lakh crore.

CASA (Current Account Savings Account) deposits grew 8.05% YoY to ₹20.69 lakh crore, while term deposits rose 14.23% YoY to ₹31.86 lakh crore. The CASA ratio declined by 134 bps YoY and 61 bps QoQ to 39.36%.

In terms of asset quality, the bank showed resilience, with the Gross NPA ratio improving to 1.83%, supported by a 7.34% YoY decline in absolute GNPA, despite a slight QoQ increase of 1.51% to ₹78,040 crore. Net NPAs declined 7.64% YoY to ₹19,908 crore.

The Provision Coverage Ratio (PCR) remained healthy at 74.49%, and 91.71% including AUCA. The slippage ratio improved by 9 bps YoY to 0.75%, while loan loss provisions rose to ₹4,934 crore, up 9.21% YoY and 24.46% QoQ. The credit cost stood at 0.47% for the quarter.

The bank’s Capital Adequacy Ratio (CAR) stood at 14.63% at the end of Q1 FY26. On the digital front, 66% of savings bank accounts were acquired digitally through YONO, and the share of alternate channels in total transactions increased from about 98.2% in Q1 FY25 to about 98.6% in Q1 FY26.