State Bank of India (SBI) reported a net profit of ₹21,121 crore for the April-June quarter, up 10% from ₹19,160 crore in the corresponding period last year.
The country’s largest lender also recorded healthy growth in its core interest income during the quarter. Net interest income (NII) rose 12% year-on-year to ₹46,992 crore, compared with ₹41,907 crore a year earlier.
The numbers point to a quarter in which business growth was accompanied by an improvement in the bank’s stressed-asset position.
Lower provisions support profitability
A notable contributor to SBI’s quarterly performance was the decline in provisions for bad loans.
Provisions for non-performing assets fell 32% to ₹3,359 crore, against ₹4,934 crore in the same quarter last year.
On margins, SBI reported a domestic net interest margin of 3%, while the whole-bank NIM stood at 2.86% during the quarter.
SBI’s gross NPA ratio improves to 1.47%
Asset quality continued to strengthen.
SBI’s gross non-performing asset ratio declined to 1.47% of total advances at the end of the June quarter, compared with 1.83% a year earlier. It was also marginally better than the 1.49% recorded in the preceding quarter.
In absolute terms, gross NPAs fell to ₹74,272 crore, from ₹78,039 crore in the corresponding quarter of the previous year.
The combination of a lower gross NPA ratio and reduced provisioning for bad loans provided additional support to the bank’s quarterly earnings.
Advances grow 19%, domestic lending expands 18.15%
SBI also maintained strong momentum in its loan book.
Whole-bank advances increased 19% year-on-year, while domestic advances grew 18.15%. Foreign office advances rose 21.38% in rupee terms and 9.97% in dollar terms.
The bank’s retail, agriculture and MSME portfolio, collectively referred to as RAM advances, expanded 18.20% year-on-year, with double-digit growth across all segments.
Agriculture emerged as the fastest-growing segment among the categories disclosed, with advances rising 25.43%. SME advances increased 22.33%, while retail personal advances grew 15.15% from a year earlier.
Total business crosses ₹111 lakh crore
The quarter also marked new scale milestones for SBI.
The bank’s total business crossed ₹111 lakh crore, while deposits moved past ₹60 lakh crore and advances exceeded ₹50 lakh crore.
Digital acquisition remained a meaningful part of the bank’s retail operations. SBI said more than 64% of savings bank accounts were opened digitally through its YONO application.
SBI shares rise after Q1 earnings
The earnings announcement drew buying interest in SBI shares. The stock climbed as much as 3.64% to an intraday high of ₹1,124.50 following the results.
The first-quarter numbers show growth across SBI’s lending franchise alongside an improvement in asset quality. Higher net interest income, lower NPA provisions and double-digit growth across key loan segments were the central features of the quarter.
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