Newsletter
India’s largest lender, State Bank of India (SBI), had a strong June quarter, with profits and core income growing faster than analysts expected.
By the numbers:
- Consolidated net profit: ₹24,113 crore, up 13.7% YoY
- Core income (NII): ₹46,992 crore, up 15% YoY
- Standalone net profit: ₹21,121 crore, up 10% YoY
- Gross NPA: Improved to 1.47% from 1.49%
- Net NPA: Improved to 0.38% from 0.39%
- Loans: Grew 18.6% YoY
So, what’s driving this growth? Strong demand for loans and steady deposit growth.
Business growth remains strong
SBI’s total business crossed ₹110 lakh crore in Q1 FY27, helped by steady deposit growth and strong demand for loans. Deposits rose 9.7% YoY to ₹60.1 lakh crore, while loans crossed ₹50 lakh crore, with domestic lending growing 18.2%. Agriculture and SME loans led the way, growing 25.4% and 22.3%, followed by corporate loans at 18.1% and retail loans at 15.2%.
The bank is also moving more customers online. More than 64% of new savings accounts were opened through YONO, SBI’s digital banking app, while nearly 99% of transactions now happen through digital or other non-branch channels. SBI’s capital adequacy ratio also improved to 15.67% from 14.63% a year ago, strengthening its financial position.
There is one watch-out, though: fresh bad loans increased during the quarter, even as SBI set aside more money to cover potential losses.
Overall, the quarter shows SBI benefiting from strong credit demand, rising deposits and rapid digital adoption, while keeping its asset quality and capital position broadly healthy.
