Synopsis : State Bank of India (SBI) posts a robust 9.7% rise in consolidated Q1 profit, boosted by strong forex and treasury income despite NII pressures. Chairman C.S. Setty sees NIM recovery ahead, targeting 3% for FY26.
State Bank of India (SBI), the country’s largest lender, reported a 9.71% rise in consolidated net profit to ₹21,201 crore for the quarter ended June 30, 2025 (Q1FY26), compared to ₹19,324.96 crore in the same quarter last year (Q1FY25).
On a standalone basis, net profit stood at ₹19,160 crore, marking a 12.48% increase from ₹17,035 crore in Q1FY25. The surge was primarily fueled by higher treasury and foreign exchange income, even as net interest income (NII) saw a marginal decline.
Despite an 11.6% rise in overall advances, NII fell slightly to ₹41,072 crore from ₹41,125 crore a year earlier. Domestic net interest margin (NIM) dropped to 3.02% in Q1FY26, from 3.22% in Q4FY25 and 3.35% in Q1FY25.
SBI Chairman C.S. Setty noted that NIM is expected to follow a U-shaped recovery path, aiming to achieve an annual 3% level. The bank has maintained its FY26 loan growth target at 12%, with domestic retail loans up 12.56%, overseas book up 14%, and corporate advances rising 5.7%.
SBI currently holds a ₹7 lakh crore loan pipeline, though disbursements are facing delays due to geopolitical uncertainties. Corporate loan disbursements are expected to pick up pace in the coming quarters, with the bank targeting a 10% growth in this segment for FY26.
On the asset quality front, gross non-performing assets (GNPA) stood steady at 1.83% in Q1FY26, compared to 1.82% in Q4FY25 and a notable improvement from 2.21% in Q1FY24. SBI aims to maintain GNPA below 2% across business cycles.
Despite global and domestic challenges, the bank anticipates stability returning by the third quarter of FY26 and expects no significant impact from IT sector layoffs, citing its well-diversified loan portfolio.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.
If you want, I can also make a catchy social media caption + thumbnail text for this news so it’s ready for LinkedIn, Twitter, or YouTube. That will help it trend faster.
