SBI Q1 FY26 Net Profit Soars ~12.5% to ₹19,160 Crore, Powered by Treasury & Retail Momentum
- nvshah0610
- 3 days ago
- 2 min read
State Bank of India (SBI), the nation’s largest lender by assets, posted a standout net profit of ₹19,160 crore for the quarter ended June 2025, marking a sharp 12–12.5% rise from ₹17,035 crore a year earlier—surpassing market expectations. This impressive growth was fueled by a robust surge in non-lending income, even as net interest margins came under pressure amid a challenging interest rate environment
1. Profit & Core Income Metrics
The bank achieved a net profit of ₹19,160.44 crore, showing a 12.48% YoY increase over the ₹17,035 crore recorded in Q1 FY25.
Total operating profit rose 15.49% to ₹30,544 crore.
2. Net Interest Income & Margin Trends
Net interest income remained relatively flat at ₹41,072 crore, down just 0.1–0.13% YoY.
Net interest margin (NIM) contracted, with overall NIM at 2.90% (down ~32 bps) and domestic NIM at 3.02% (down ~33 bps).
3. Surge in Non-Interest Income
SBI’s non-interest income jumped 55% YoY to ₹17,346 crore, bolstered by substantial gains from treasury operations and forex.
4. Deposit, Loan Growth & Asset Quality
Advances grew 11.6–11.61% YoY to ₹42.5 lakh crore, with SME loans leading the way (+19%). Deposits rose 11.66%, while the CASA ratio stood at 39.36%.
The gross NPA ratio improved to 1.83%, and net NPA improved to 0.47%, underlining strong asset quality.
5. Stock Reaction
Despite the robust financial performance, SBI’s stock closed lower by approximately 0.93% at around ₹704.83, signaling cautious investor sentiment amid market volatility.
Summary Table
Metric | Q1 FY26 | YoY Change / Notes |
Net Profit | ₹19,160 crore | ↑ ~12–12.5% (past: ₹17,035 crore) |
Operating Profit (PPOP) | ₹30,544 crore | ↑ ~15.5% |
Net Interest Income (NII) | ₹41,072 crore | ↓ ~0.1–0.13% |
Net Interest Margin (NIM) | 2.90% / Domestic 3.02% | ↓ 32–33 bps |
Non-Interest Income | ₹17,346 crore | ↑ ~55% |
Advances & Deposits Growth | ~11.6% each | Solid financing momentum |
Asset Quality (Gross / Net NPA) | 1.83% / 0.47% | Improved vs. YoY |
Share Price Movement | ~–0.93% (₹704.8 closing) | Subdued despite strong earnings |
SBI delivered a balanced performance—anchored by exceptional non-lending revenues and controlled costs, even as margins came under pressure. Stable asset quality and healthy advance growth suggest sustained operational strength.
source:-buisness today,mint
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