Now Reading: SBI Q1 net profit up 10.2% to Rs 21,121 crore on higher interest income
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SBI Q1 net profit up 10.2% to Rs 21,121 crore on higher interest income
SBI Q1 net profit up 10.2% to Rs 21,121 crore on higher interest income
State Bank of India posted a standalone net profit of Rs 21,121 crore for the first quarter of fiscal 2026, up 10.2 per cent from Rs 19,160 crore a year ago. Net…
The Story in Brief
State Bank of India posted a standalone net profit of Rs 21,121 crore for the first quarter of fiscal 2026, up 10.2 per cent from Rs 19,160 crore a year ago. Net interest income rose 15 per cent to Rs 46,992 crore, driven by an 18.6 per cent jump in gross advances to Rs 50.5 lakh crore. Deposits grew only 9.7 per cent to Rs 60 lakh crore, widening the gap between lending and deposit growth.
The bank's domestic net interest margin dipped marginally to 3 per cent. Gross NPAs improved to 1.47 per cent of advances, down 36 basis points. SBI expects credit growth of 14-15 per cent and deposit growth of 10-11 per cent for the full fiscal year. It has raised $6 billion through FCNR(B) deposits so far and aims for $10 billion by September 2027 quarter.
The Indian Opinion
The usual media chorus that SBI is 'crushing it' while it simply grew single-digits should be treated with caution. Its deposit growth (9.7%) is lagging credit growth (18.6%), creating a classic asset-liability mismatch. The NIM stuck at 3% despite rising loan volumes suggests funding costs are biting. The real test is whether SBI can sustain NIM above 3% when deposit competition heats up. Has the bank cracked the riddle of mobilising low-cost deposits, or is this just a one-off quarterly sugar high?
Source: thehindu.com
This story was synthesised by AI from the source linked above.
