State Bank of India (SBI), the country’s largest lender, on Friday reported a 10.23 per cent year-on-year (YoY) rise in net profit for the first quarter of FY27, driven by strong growth in interest income, robust loan expansion and a sharp decline in bad loan provisions.
The bank posted a net profit of Rs 21,121 crore for the April-June quarter, compared with Rs 19,160 crore in the corresponding period of the previous financial year (Q1 FY26), according to its stock exchange filing.
Net interest income (NII), the difference between interest earned on loans and interest paid on deposits, increased 14.9 per cent to Rs 46,992 crore, while operating profit increased 9.8 per cent to Rs 33,529 crore, the public sector lender added in its regulatory filing.
Commenting on the bank’s performance, CS Setty, Chairman, State Bank of India, said that at SBI, our strategic direction continues to be guided by a simple philosophy – Digital First, Customer First and Nation Always.
“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,” he stated.
SBI also reported an improvement in its net interest margin (NIM), which rose by nearly 15 per cent. Domestic NIM stood at 3 per cent, while the whole bank NIM came in at 2.86 per cent.
The bank’s profitability was supported by a significant reduction in provisions for non-performing assets (NPAs).
Provisions for bad loans declined 32 per cent year-on-year to Rs 3,359 crore from Rs 4,934 crore in the year-ago quarter.
Asset quality continued to strengthen during the quarter. Gross NPAs as a percentage of total advances improved to 1.47 per cent at the end of June 2026, compared with 1.83 per cent a year earlier and 1.49 per cent in the previous quarter.
In absolute terms, gross NPAs fell to Rs 74,272 crore from Rs 78,039 crore in the corresponding period last year.
The lender maintained strong credit growth across businesses, with whole bank advances rising 19 per cent year-on-year.
Domestic advances increased 18.15 per cent, while advances from overseas offices grew 21.38 per cent in rupee terms and 9.97 per cent in dollar terms.
