Now Reading: SBI Q1 profit up 10.2% to Rs 21,121 crore, asset quality best in 20 years
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SBI Q1 profit up 10.2% to Rs 21,121 crore, asset quality best in 20 years
SBI Q1 profit up 10.2% to Rs 21,121 crore, asset quality best in 20 years
State Bank of India posted its highest-ever quarterly net profit of Rs 21,121 crore in Q1FY27, up 10.2% from Rs 19,160 crore a year ago, boosted by an 18.6% jump in advances.…
The Story in Brief
State Bank of India posted its highest-ever quarterly net profit of Rs 21,121 crore in Q1FY27, up 10.2% from Rs 19,160 crore a year ago, boosted by an 18.6% jump in advances. Net interest income rose 14.9% to Rs 46,992 crore. Gross advances crossed Rs 50 lakh crore, with total business at Rs 110 lakh crore. Gross NPA ratio improved to 1.47%, the lowest in over two decades, while net NPA stood at 0.38%.
Chairman CS Setty dismissed concerns over sequential asset quality stress, saying Q1 is seasonally weak and recoveries of about Rs 4,900 crore pulled back. He guided for 14-15% credit growth and 10-11% deposit growth this fiscal. The bank expects FCNR(B) deposits to exceed $10 billion under the RBI swap window, helping cut funding costs. Treasury income fell 70% to Rs 2,500 crore after unwinding a large forex position.
The Indian Opinion
SBI's record profit and cleanest asset quality in two decades should quiet the usual kvetching about public sector banks being perennial laggards. Yet the chairman's own numbers deserve scrutiny: agricultural advances up 25% and SME loans up 22%, with much of that SME growth under a government guarantee scheme. That is not organic credit demand, that is policy push. Watch whether slippages from these books spike once ECLGS protection expires, and whether deposit growth of 10% can fund a 15% advance book without squeezing margins. The real test will come in Q3 and Q4, when seasonal tailwinds fade.
Sources (4): thehindu.com, economictimes.indiatimes.com, newindianexpress.com, livemint.com
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
