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SBI Q1 net profit rises 12.5% to ₹19,160 crore on strong treasury gains
The bank posted a net profit of ₹19,160 crore in Q1FY26, compared to ₹17,035 crore in the same period of the previous financial year (Q1FY25). Sequentially, the profit rose 2.78 per cent from ₹18,643 crore in Q4FY25. Its stock closed flat at ₹804.55 on the BSE.
SBI Chairman C S Setty, in the post-result press conference, said treasury gains—part of non-interest income—added to profits. Containment of operational costs also contributed to the bottom line.
Net interest income (NII)—the difference between interest earned and interest expended—declined 0.13 per cent Y-o-Y to ₹41,072 crore. Sequentially, NII fell 3.98 per cent from ₹42,775 crore in Q4FY25.
Other income, including treasury gains, commissions, fees and recoveries, rose 55.4 per cent Y-o-Y to ₹17,345 crore in Q1FY26 from ₹11,161 crore in the first quarter of the previous financial year. Treasury gains were ₹6,320 crore in Q1FY26, up from ₹2,589 crore in Q1FY25.
Net interest margin (NIM) from domestic operations moderated by 33 basis points Y-o-Y to 3.02 per cent for the quarter. Sequentially, NIM declined 13 basis points from 3.15 per cent in Q4FY25.
Setty said margins are expected to improve by the end of March 2026, with guidance of above 3 per cent. NIMs are expected to remain under pressure in Q2FY26 as deposit costs have peaked.
The bank's analyst presentation showed that the cost of deposits for domestic operations rose to 5.21 per cent in Q1FY26 from 5.00 per cent in Q1FY25 and 5.11 per cent in Q4FY25. The yield on advances moderated to 8.78 per cent in Q1FY26 from 8.89 per cent a year ago and 8.98 per cent in March 2025.
Gross advances grew 11.61 per cent Y-o-Y to ₹42.54 trillion, of which retail loans rose 12.55 per cent to ₹15.39 trillion. Home loans grew 15.05 per cent Y-o-Y to ₹8.5 trillion.
The chairman said the corporate loan pipeline stands at about ₹7 trillion—₹3.5 trillion in sanctioned lines and another ₹3.5 trillion under discussion. The bank will also scale up personal loans during the festive season. It expects loan growth of 12 per cent in the current financial year.
Deposits grew 11.66 per cent to ₹54.73 trillion, with domestic current and savings account (CASA) deposits rising 8.05 per cent. The CASA ratio declined to 39.36 per cent as of 30 June 2025 from 40.70 per cent a year ago and 39.97 per cent in March 2025. The bank expects deposits to grow by 10 per cent in FY26.
Asset quality remained robust, with the gross non-performing assets (NPA) ratio at 1.83 per cent, down 38 basis points from Q1FY25. However, it inched up slightly from 1.82 per cent in March 2025. 'The asset quality remains strong, and we expect gross NPAs to remain below 2 per cent,' Setty said.
Net NPA ratio stood at 0.47 per cent, down 10 basis points Y-o-Y and flat sequentially. The provision coverage ratio (PCR), including written-off accounts, was 91.71 per cent compared to 91.76 per cent a year ago.
SBI's capital adequacy ratio stood at 14.63 per cent as of 30 June 2025, up 85 basis points Y-o-Y. The common equity tier-1 (CET1) ratio was 11.10 per cent. With the recent ₹25,000 crore equity capital raised from institutional investors, the capital adequacy ratio is expected to rise above 15 per cent.
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