State Bank of India (SBI), the largest public sector lender in the country, has announced its financial results for the first quarter, showcasing a stellar performance across various parameters. The bank reported a standalone net profit of 21,121 crore rupees, marking a 10 percent increase compared to the 19,160 crore rupees recorded in the same quarter of the previous financial year. This profit figure Importantly exceeded market expectations, which had estimated a profit of approximately 19,052 crore rupees for the period.
Strong Growth in Net Interest Income
A key highlight of the quarterly performance was the substantial growth in Net Interest Income (NII). The bank's NII rose by 15 percent year-on-year to reach 46,992 crore rupees. This figure also surpassed the analyst estimates of 46,214 crore rupees. The operating profit of the bank saw a healthy growth of 10 percent, amounting to 33,529 crore rupees. These figures indicate a solid operational efficiency and a strong core banking performance during the quarter.
Improvement in Net Interest Margins
The domestic Net Interest Margin (NIM) of the bank stood at 3 percent, reflecting an improvement of 7 basis points compared to the fourth quarter of the previous fiscal year (Q4FY26). 86 percent. This improvement in margins is particularly noteworthy as analysts had anticipated pressure on profitability due to rising funding costs and the repricing of term deposits. The bank's ability to maintain and improve its margins despite these challenges has been a positive takeaway for investors.
Total Business Crosses 110 Trillion Milestone
SBI achieved a historic milestone as its total business crossed the 110 trillion rupee mark during the quarter. The bank's deposit base grew to over 60 lakh crore rupees, while its total advances or loans surpassed the 50 lakh crore rupee threshold. The overall advances of the bank grew by 19 percent on a yearly basis. 15 percent. The performance of foreign offices was also strong, with advances increasing by 21 percent in rupee terms and 10 percent in dollar terms.
Segment-wise Performance of Loans
The growth in advances was broad-based, spanning across retail, agriculture, SME, and corporate segments. 20 percent annually, with all sub-segments recording double-digit growth. The agriculture sector led the growth with a 25 percent increase in advances, followed by the SME segment which saw a 22 percent rise. Retail personal advances grew by 15 percent, while corporate advances recorded an 18 percent growth. Following the announcement of these strong financial results, SBI shares witnessed a positive momentum, rising by 3 percent in the stock market.