Mumbai: The country’s largest lender State Bank of India on Friday reported a 12.5 per cent increase in net profit at Rs 19,160 crore for the April-June quarter of the current financial year, compared to the corresponding figure of Rs 17,035 crore in the same quarter of the previous fiscal.
SBI’s operating profit for Q1 FY26 grew by a robust 15.49 per cent year-on-year to Rs 30,544 crore.
Net Interest Income (NII), which reflects the difference between the interest earned on loans and that paid on deposits, for the quarter remained flat at Rs 41,072.4 crore, which is around the same as the previous year’s figure of Rs 41,126 crore.
SBI’s asset quality for the quarter improved by 38 basis points with gross NPAs at the end of the April-June quarter at 1.83 per cent. Net NPA improved by 10 basis points to 0.47 per cent compared to the same quarter of the previous year.
The bank’s slippage ratio for Q1 FY26 improved by 9 basis points year-on-year to stand at 0.75 per cent. The slippage ratio in banking is a measure of the rate at which a bank’s good loans turn into non-performing assets (NPAs). It is the ratio of new NPAs to the standard advances at the beginning of a year. Fresh accretion of NPAs during the year or a falling below the current position of standard assets of the bank is a slippage.
The bank’s SME advances recorded a robust 19.10 per cent year-on-year growth, followed by agricultural advances which grew by 12.67 per cent. Retail personal advances and corporate advances registered year-on-year growth of 12.56 per cent and 5.7 per cent respectively.
The government-owned bank’s current and saving deposits (CASA) deposits were up 8 per cent from last year. CASA deposits represent a source of raising funds at low interest rates and any increase boosts the profitability of a bank. SBI’s CASA ratio stands at 39.36 per cent as on 30th June 25.
SBI’s wholesale bank advances were up 11.6 per cent in the April-June quarter compared to last year, while domestic advances were up 11 per cent on a year-on-year basis.
Wholesale bank deposits increased by 11.6 per cent in the first quarter from the same period of the previous year while domestic advances increased by 11.96 per cent. SBI’s foreign offices’ advances grew by 14.81 per cent year-on-year with whole bank advances now at Rs 42.5 lakh crore.
Shares of SBI were trading at around Rs 795.35 apiece on Friday afternoon.
(IANS)
