State Bank of India (SBI), India’s largest public sector bank, has announced a robust financial performance for the first quarter of the financial year 2025-26 (Q1FY26).The bank’s net profit grew to ₹19,160 crores, a **significant 12.48% compared to the previous (YoY). This strong showing comes alongside improved asset quality and healthy advances growth, marking a promising start to the fiscal year for SBI.
State Bank of India Reports Strong Q1FY26 Profitability
Effective operations were highlighted by SBI’s operational profit for Q1FY26, which increased by 15.49% YoY to ₹30,544 crores.
However, the Net Interest Income (NII) for the quarter saw a marginal decrease of 0.13% YoY, standing at ₹41,072 crores. The bank’s Return on Assets (ROA) and Return on Equity (ROE) for Q1FY26 were recorded at 1.14% and 19.70% respectively, reflecting strong financial health.
While the domestic NIM saw a 33 basis points (bps) YoY decline, profitability metrics remained robust, indicating effective management and strategic positioning.
SBI’s Robust Loan and Deposits Growth in Q1FY26
The bank’s total Whole Bank Advances demonstrated a healthy 11.61% YoY growth, reaching ₹42.5 Lakh crores as of June 30, 2025. Domestic Advances grew by 11.06% YoY, with Foreign Offices’ Advances showing an even stronger 14.81% YoY growth. This balanced growth indicates a diversified and expanding credit portfolio for the bank.
Segment-wise, SME Advances led with a 19.10% YoY growth, followed by Agri Advances at 12.67% YoY. Retail Personal Advances expanded by 12.56% YoY, including Home Loans which increased by 15.05% YoY.
Corporate Advances, however, grew a more modest 5.70% YoY. Total Whole Bank Deposits grew by 11.66% YoY to ₹54,73,254 crores, indicating strong public trust and successful deposit mobilization efforts.
CASA (Current Account Savings Account) deposits grew by 8.05% YoY, with the CASA ratio standing at 39.36% as on June 30, 2025.
Improving SBI Asset Quality: Key Takeaways from Q1FY26 Earnings
The Gross Non-Performing Assets (NPA) ratio improved by 38 bps YoY to 1.83%, while the Net NPA ratio also saw a 10 bps YoY improvement, standing at a low 0.47%. These figures reflect proactive bad loan management and a healthier loan book.
The Provision Coverage Ratio (PCR) stands at 74.49%, and PCR including AUCA (Additional Union Capital Account) stands at a robust 91.71%, providing ample buffer against potential future defaults. /
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