NE ECONOMIC BUREAU
MUMBAI, AUG. 7
India’s banking behemoth State Bank of India (SBI) has scripted yet another chapter in its remarkable growth story, reporting its highest-ever quarterly net profit of ₹21,121 crore while simultaneously crossing the landmark ₹110-lakh-crore total business milestone. Backed by record profitability, robust loan growth, healthier margins, pristine asset quality and an accelerating digital transformation agenda, the country’s largest lender has reaffirmed its position as the undisputed pace-setter of India’s banking sector.
Announcing its financial results for the quarter ended June 30, 2026 (Q1 FY27), SBI reported a 10.23% year-on-year increase in net profit to ₹21,121 crore, driven by stronger operating income and significantly lower credit costs.
- India’s largest lender delivers highest-ever quarterly net profit, driven by robust credit growth, stronger margins and lower credit costs
- Total business crosses ₹110 lakh crore as deposits top ₹60 lakh crore and advances breach ₹50 lakh crore
- Gross NPA falls to 1.47% and Net NPA to a two-decade low of 0.38%, reinforcing SBI’s balance sheet strength
- Chairman C.S. Setty unveils Digital First roadmap with SARAL, YONO Ji, MSME Dream and PRISM powering next-generation banking
- Retail, Agriculture, SME and Corporate portfolios register double-digit growth, with agriculture leading at 25.43%
- SBI Funds Management listing marks a milestone as the banking giant gears up for its 75th anniversary in 2030
Operating profit rose 9.77% year-on-year to ₹33,529 crore, while Net Interest Income (NII) grew an impressive 14.88% to ₹46,992 crore, reflecting sustained business momentum across key lending segments.
The bank also demonstrated resilience in profitability, with Domestic Net Interest Margin (NIM) improving by 7 basis points over the previous quarter to 3.00%, while Whole Bank NIM improved by 5 basis points to 2.86%.
Historic ₹110-Lakh-Crore Business Milestone
SBI achieved another landmark during the quarter by taking its total business beyond ₹110 lakh crore, with deposits crossing ₹60 lakh crore and advances exceeding ₹50 lakh crore.
Whole Bank advances registered a robust 18.63% year-on-year growth, while domestic advances grew 18.15%, led by sustained momentum across the Retail, Agriculture and SME (RAM) portfolio.
The RAM segment expanded 18.20%, with agriculture emerging as the fastest-growing vertical at 25.43%, followed by SME advances at 22.33% and retail personal advances at 15.15%.
Corporate advances also remained healthy, rising 18.05%, while overseas advances increased 21.38% in rupee terms.
On the liabilities side, total deposits grew 9.73%, supported by a 14.39% increase in retail term deposits and 9.30% growth in CASA deposits. Despite intense competition, the bank maintained a healthy CASA ratio of 39.24%.
Asset Quality Hits Two-Decade Best
SBI further strengthened its balance sheet with one of the strongest asset quality performances in recent years.
The Gross Non-Performing Asset (GNPA) ratio improved to 1.47%, while the Net NPA ratio declined to just 0.38%, its lowest level in more than two decades.
The bank’s Provision Coverage Ratio (PCR) stood at 74.20%, while the Slippage Ratio improved by 18 basis points year-on-year to 0.57%.
Credit costs remained exceptionally low at 0.27%, supported by strong recoveries and prudent underwriting standards.
SBI’s Capital Adequacy Ratio (CAR) strengthened to 15.67%, improving by 104 basis points year-on-year, comfortably above regulatory requirements.
Return on Assets (ROA) stood at 1.11%, while Return on Equity (ROE) remained strong at 17.87%.
Digital Transformation Drives Future Growth
Commenting on the results, SBI Chairman C.S. Setty said the bank continues to pursue a long-term strategy anchored on technology, customer-centricity and nation-building.
“At SBI, our strategic direction continues to be guided by a simple philosophy—Digital First, Customer First and Nation Always.”
He said the bank has expanded its flagship operational transformation programme SARAL, designed to simplify customer journeys and make banking faster, easier and more convenient.
“During the quarter, we continued to simplify banking by expanding our flagship Operations Process Re-engineering project, SARAL, with the objective of making customer journeys faster, simpler and more convenient.”
SBI also launched YONO Ji, an Agentic AI-powered virtual assistant on YONO Business, providing commercial customers with round-the-clock assistance.
The bank has also expanded its Business Rule Engine ‘MSME Dream’ to cover SME loans of up to ₹10 crore, enabling faster and more consistent lending decisions without compromising underwriting quality.
On the risk management front, SBI introduced PRISM, its predictive stress-monitoring platform.
“Through PRISM, our predictive stress monitoring platform, we are leveraging internal and external sources to identify early signs of stress in borrower accounts. This initiative also enhances our preparedness for the implementation of the proposed Expected Credit Loss framework.”
Highlighting the bank’s long-term vision, Setty added: “SBI is building not only for the next quarter, but for the next decade.”
Subsidiaries Continue to Shine
The Chairman said SBI’s subsidiaries continued to maintain leadership positions across their respective businesses.
“During the quarter, the successful listing of SBI Funds Management Limited marked an important milestone for the SBI Group and reinforced the value that our subsidiary businesses continue to create for all stakeholders.”
Looking ahead, he reaffirmed the bank’s long-term commitment to innovation and nation-building.
“As we progress towards our 75th anniversary in 2030, our focus is on creating the SBI of the future.”
Digital Banking Gains Unprecedented Momentum
SBI further consolidated its leadership in digital banking during the quarter.
More than 64% of savings bank accounts were opened digitally through YONO, while 98.8% of all banking transactions were conducted through alternate digital channels, up from 98.6% a year ago.
The bank also announced that YONO now has more than 10.5 crore registered users, while registrations on the newly launched YONO platform crossed five crore within just six months, underscoring rapid customer adoption and SBI’s growing digital footprint.
With record profitability, resilient margins, industry-leading asset quality, robust capital buffers and a technology-led growth strategy, SBI has entered FY27 on a position of considerable strength, reinforcing its role as the principal financial engine powering India’s economic transformation.
