SBI Q1 net profit rises 10% to ₹21,121cr
What's the story
The State Bank of India (SBI) has reported a net profit of ₹21,121.22 crore for the June quarter (Q1FY27), marking a year-on-year increase of 10.23%. This is an improvement over the ₹19,160.44 crore profit recorded in the same quarter last year. The public sector lender's interest income also witnessed a significant rise during this period. Following the announcement of its Q1 results, SBI's shares witnessed a surge of 3.21% on Friday.
Financial performance
Interest income soars to ₹46,992 crore
SBI's interest income for the quarter under review stood at ₹46,992 crore, a 14.88% increase from ₹40,907 crore in the same period last year.
The bank also witnessed an improvement in its asset quality during this quarter.
The gross non-performing asset (GNPA) ratio improved to 1.47% from 1.49% in the previous quarter while net NPA ratio improved marginally to 0.38%, compared with 0.39% in March quarter.
Provisioning details
Provisions increase to ₹5,047 crore
SBI's provisions for the quarter increased to ₹5,047 crore from ₹2,872 crore in the previous quarter and ₹4,759 crore in the same quarter last year.
Despite this increase, the bank's credit cost remained stable sequentially at 0.27% and improved from 0.47% a year ago.
This indicates that even with higher provisioning requirements, SBI has managed to maintain its credit quality metrics effectively during this period.
Margin expansion
NIM at 3% for domestic operations
SBI's domestic net interest margin (NIM) stood at 3% while the whole-bank NIM expanded by 5 basis points quarter-on-quarter to 2.86%.
On the business front, gross advances grew by an impressive 18.6% year-on-year and a marginal 2.3% quarter-on-quarter during this period.
However, fresh slippages increased to ₹7,359 crore from ₹5,548 crore in the previous quarter, pushing up the slippage ratio to 0.57%, from its previous value of 0.47%.