State Bank of India (SBI), India’s largest lender, reported its highest-ever quarterly net profit for the three months ended June, supported by strong loan growth, higher interest income and lower credit costs.
Net profit rose 10.23% year-on-year to Rs 21,121 crore in the first quarter of FY27. Operating profit increased 9.77% to Rs 33,529 crore, while net interest income (NII) rose 14.88% to Rs 46,992 crore.
SBI’s domestic net interest margin (NIM) improved to 3%, up seven basis points from the previous quarter. Whole-bank NIM also increased to 2.86%.
The bank’s total business crossed Rs 110 lakh crore, with advances rising 18.63% year-on-year and deposits increasing 9.73%.
Growth was broad-based across its lending portfolio. Agriculture advances rose 25.43%, SME loans increased 22.33% and retail personal advances grew 15.15%. Corporate advances rose 18.05%.
SBI’s asset quality also improved, with gross non-performing assets (NPA) falling to 1.47% and net NPAs declining to 0.38%, their lowest levels in more than two decades. Credit costs remained low at 0.27%.
The bank’s capital adequacy ratio stood at 15.67%, an improvement of 104 basis points from a year earlier. Return on assets was 1.11%, while return on equity stood at 17.87%.
Digital banking continued to expand, with more than 64% of savings accounts opened through the YONO platform during the quarter. Alternative channels accounted for 98.8% of total transactions.
SBI Chairman C.S. Setty said the bank would continue to focus on digital banking, customer service and technology-led risk management. The bank has also expanded its MSME Dream platform to cover SME loans of up to Rs 10 crore.
SBI said its YONO platform now has more than 10.5 crore registered users, while registrations on its newly launched YONO platform crossed five crore within six months.
The results highlight continued growth in lending and improving asset quality at the country’s largest lender.
