|
State Bank of India (SBI) reported a 10.23 per cent year-on-year rise in net profit to Rs 21,121 crore for the first quarter of FY2026-27, supported by strong growth in net interest income and advances, along with improvement in asset quality.
The country's largest lender had reported a net profit of Rs 19,160 crore in the corresponding quarter of the previous financial year. Sequentially, profit rose 7.30 per cent from Rs 19,684 crore in the March quarter. Net Interest Income (NII), the difference between interest earned and interest paid by a bank, increased 14.88 per cent year-on-year to Rs 46,992 crore during the quarter from Rs 40,907 crore a year earlier. Operating profit grew 9.77 per cent to Rs 33,529 crore. SBI's domestic net interest margin (NIM) stood at 3 per cent in Q1 FY27, improving by 7 basis points from 2.93 per cent in the preceding quarter. However, it was marginally lower than 3.01 per cent recorded in the year-ago period. The bank continued to record strong credit growth, with gross advances rising 18.63 per cent year-on-year to Rs 50.47 lakh crore as of June 2026. Domestic advances grew 18.15 per cent, while corporate advances increased 18.05 per cent. Retail, agriculture and MSME (RAM) advances grew 18.20 per cent, with all segments recording double-digit growth. Agriculture advances rose 25.43 per cent, SME advances increased 22.33 per cent and retail personal advances grew 15.15 per cent. Deposits increased 9.73 per cent year-on-year to Rs 60.06 lakh crore. CASA deposits grew 9.30 per cent, while the CASA ratio stood at 39.24 per cent as of June-end. SBI said its overall business crossed Rs 110 lakh crore during the quarter, with deposits and advances crossing Rs 60 lakh crore and Rs 50 lakh crore, respectively. Asset quality also improved during the quarter. The gross non-performing asset (NPA) ratio declined by 36 basis points year-on-year to 1.47 per cent from 1.83 per cent, while the net NPA ratio improved by 9 basis points to 0.38 per cent from 0.47 per cent. The bank also said more than 64 per cent of savings bank accounts were opened digitally through YONO during Q1 FY27, while alternate channels accounted for around 98.8 per cent of its total transactions. (ANI)
|
