SBI Q1 Results: Net Profit Jumps 12% YoY to ₹19,160 Crore Despite NII, NIM Decline

Market Performance

State Bank of India (SBI) announced its Q1FY26 results on August 8, reporting a steady financial performance.

Despite minor pressures on margins and interest income, the bank recorded double-digit profit growth during the quarter. Strong operating income and improved asset quality were key highlights.

Main News: Profit Rises, Margins Narrow

• SBI's standalone net profit for Q1FY26 stood at ₹19,160.44 crore, up 12.5% from ₹17,035.16 crore in Q1FY25.
• Interest earnings rose by 5.80% YoY to ₹1,17,995.88 crore, compared to ₹1,11,525.98 crore in the previous year.
• The bank’s operating profit also recorded strong growth, rising 15.49% YoY to ₹30,544 crore.

However, the bank saw marginal pressure in its core income:

• Net Interest Income (NII) declined by 0.13% YoY to ₹41,072 crore.
• The Net Interest Margin (NIM) for the whole bank stood at 2.90%, while domestic NIM was 3.02%, down 33 bps YoY.

Company Details: Strong Advances and Healthy Asset Quality

• Gross advances rose by 11.61% YoY to ₹42,54,516 crore.
• Corporate loan book grew by 5.70% YoY, while retail personal advances increased by 12.56% YoY.
• SBI’s capital adequacy ratio (CAR) improved to 14.63%, gaining 77 bps YoY.

In terms of asset quality, the bank made further improvements:

• Gross NPA ratio declined to 1.83%, improving by 38 bps YoY.
• Net NPA stood at 0.47%, improving by 10 bps YoY.
• Gross NPA fell by 7.34% YoY to ₹78,040 crore.
• Net NPA declined by 7.64% YoY to ₹19,908 crore.
• Provision Coverage Ratio (PCR) stood at 74.49%.
• Slippage ratio improved by 9 bps YoY to 0.75%.
• CASA ratio dropped by 134 bps YoY to 39.36%.

Financial Highlights

Revenue

• Interest earnings: ₹1,17,995.88 crore
• YoY growth: 5.80%

Operating Profit

• Q1FY26: ₹30,544 crore
• YoY growth: 15.49%

Net Interest Income (NII)

• Q1FY26: ₹41,072 crore
• YoY decline: 0.13%

Net Interest Margin (NIM)

• Whole Bank: 2.90%
• Domestic: 3.02%
• YoY decline (Domestic): 33 bps

Net Profit

• Q1FY26: ₹19,160.44 crore
• Q1FY25: ₹17,035.16 crore
• YoY growth: 12.5%

Capital Adequacy Ratio (CAR)

• Q1FY26: 14.63%
• YoY increase: 77 bps

Gross Advances

• Q1FY26: ₹42,54,516 crore
• YoY growth: 11.61%

Corporate Loan Growth

• YoY growth: 5.70%

Retail Personal Advances

• YoY growth: 12.56%

Gross NPA

• Amount: ₹78,040 crore
• YoY decline: 7.34%
• Ratio: 1.83% (improved by 38 bps)

Net NPA

• Amount: ₹19,908 crore
• YoY decline: 7.64%
• Ratio: 0.47% (improved by 10 bps)

Provision Coverage Ratio (PCR)

• Q1FY26: 74.49%

Slippage Ratio

• Q1FY26: 0.75%
• YoY improvement: 9 bps

CASA Ratio

• Q1FY26: 39.36%
• YoY drop: 134 bps

Summary

SBI's Q1FY26 performance highlighted a solid growth in profitability, strong operating metrics, and better asset quality, despite a marginal decline in NII and NIM.

The public-sector banking major has shown consistent resilience with a stable loan book and improved capital buffers, making Q1FY26 a robust quarter from a financial standpoint.