State Bank of India (SBI) Q1 results: Net profit rises 12.5% to ₹19,160 crore, NII declines marginally; asset quality remains stable

SBI's net interest income (NII) or the difference between interest earned on loans and expended on deposits declined marginally to ₹41,072 crore from ₹41,125 crore in the year-ago period. State Bank of India (SBI), the country's largest lender, on Friday, August 8, reported net profit of ₹19,160 crore in the first quarter of current financial year (Q1FY26), marking an increase of 12.5% from ₹17,035 crore in the same period last year. The profit in the April-June period was supported by lower provisioning as its provisions declined to ₹4,759 crore as against 6,442 crore in the previous quarter. The bank’s operating profit rose 15.5% to ₹30,544 crore. The bank's net interest income (NII) or the difference between interest earned on loans and expended on deposits declined marginally to ₹41,072 crore from ₹41,125 crore in the year-ago period. The bank’s net interest margin (NIM) came in at 2.9%. SBI's asset quality remained stable during the quarter as its gross non-performing assets (NPA) as a percentage of total advances came in at 1.83% as against 1.82% in the previous quarter. In absolute terms, the bank's gross NPAs came in at ₹78,040 crore. Its net NPA remained unchanged sequentially at 0.47%. The bank’s Provision Coverage Ratio (PCR) stood at 75% at the end of Q1 while PCR under Advance Under Collection Account (AUCA) stood at 91.6%. During the first quarter of current financial year, SBI's whole bank advances growth came in at 11.61% at ₹42.5 lakh crore and its whole bank deposits advanced by 11.7%, CASA deposit rose by 8% and CASA ratio stood at 39.36%, SBI said. SBI's loans to small and medium enterprises (SMEs) grew by 19.10%, agri loans advanced by 12.67% and retail personal loans and corporate loans registered growth of 12.56% and 5.70% respectively, SBI added. Following earnings announcement, State Bank of India shares fell as much as 1.88% to hit an intraday low of ₹790.10 but soon staged a recovery to trade 0.45% lower at ₹802 by 1:45 pm.