State Bank of India (SBI) on Friday turned in a strong set of numbers, posting a 10.2% year-on-year (y-o-y) rise in net profit to Rs 21,121 crore for the June quarter. Profit was driven by robust domestic loan growth of 18.15% y-o-y, higher core income and a significant drop in bad loan provisions.
The country’s biggest lender saw its asset quality improve as it reported non-performing asset ratios (NPA) that were the lowest in over two decades.
Net interest income (NII), or the difference between interest earned on loans and interest paid on deposits, rose 14.88% y-o-y to Rs 46,992 crore. Operating profit increased 9.77% y-o-y to Rs 33,529 crore, while non-interest income fell 9.07% to Rs 15,923 crore.
The results beat analysts’ estimates and lifted the SBI stock 3.6% to an intra-day high of `1,124.50 apiece on the BSE. The stock closed 1.03% higher at Rs 1,096.05.
SBI Chairman C S Setty said profits had come from good growth in advances and a healthy cost-to-income ratio. He guided for a credit growth of 14-15% and a deposit growth of 10-11% for the current year.
“We believe nominal GDP growth would be around 12-12.5% and SBI has always grown 2-3% more than that. That’s the reason we have given the credit growth guidance of 14% to 15%,” Setty said.
“We also have very significant liquidity on our balance sheet. As on June, 30, we had an excess SLR of `3.06 lakh crore. Along with FCNR (B) flows we have excess SLR of Rs 4 lakh crore,” he added.
The state-owned lender’s loan book grew 18.63% y-on-y to Rs 50.47 lakh crore, as corporates borrowed more working capital. The bank’s retail credit portfolio, including gold loans, also grew though the auto segment posted high single-digit growth.
Domestic net interest margins (NIM) expanded 7 basis points to 3% from the preceding March quarter, but declined by 1 bps from the year-ago period. The bank is broadly sticking to its full-fiscal guidance of a 3% NIM for domestic operations, he said said.
Asset quality improved further, with gross NPAs declining to 1.47% of total advances from 1.49% in the previous quarter and 1.83% a year ago. Net NPA stood at 0.38% as on June 30, 2026, down 1 basis point from the previous quarter and 9 basis points from a year earlier.
Slippages stood at Rs 7,046 crore during the June quarter compared to Rs 5,521 crore in the preceding quarter and Rs 7,945 crore a year ago.
“Of the Rs 7,000 crore of fresh slippage we have pulled back almost Rs 1,500 crore. So there’s no concern in any of these gross NPA accounts,” Setty said. The bank’s provision coverage ratio (PCR) was at 74.20% as on 30 June. The PCR including written off assets was at 91.82%.
SBI is targeting special FCNR(B) deposits of about $10 billion. “We may see a small uptick in deposit growth due to the FCNRB) inflows,” the chairman added. So far, the bank has mobilised $7.3 billion under the special swap window of the Reserve Bank of India (RBI).
The bank’s corporate loans grew faster than retail credit in the June quarter. “We will continue to see good growth from the corporate segment with 16% of the growth coming from working capital and 21% of the book coming from term loans,” SBI Managing Director Ashwini Kumar Tewari said.
Corporate loans in the quarter were up 18.05% to Rs 14.21 lakh crore and comprised 33.2% share in the total asset mix. The retail personal portfolio grew 15.15% to Rs 17.73 lakh crore while SME (small and medium enterprises) was up 22.33% to Rs 6.46 lakh crore and agri was at Rs 4.37 lakh crore, up 25.43%. The RAM (retail, agri and MSME) portfolio share was at 66.78% as on 30 June 2026.
On the deposit front, SBI posted a 9.73% growth to Rs 60.06 lakh crore. Domestic deposits grew 9.64% YoY to Rs 57.61 lakh crore. The share of low-cost CASA (current account savings account) deposits was 39.24%.
SBI has become the first bank in the country to cross Rs 110 lakh crore in its total business, with deposits exceeding Rs 60 lakh crore and advances crossing Rs 50 lakh crore, marking a new milestone for the country’s largest lender.