SBI profit rises to ₹21,121 cr,loans cross ₹50 lakh cr:At the country’s largest govt-owned bank, deposit growth falls to 9.7%

The country’s largest public sector bank, State Bank of India (SBI), delivered a strong performance in the April-June quarter. Loan growth and asset quality improved, raising expectations for better performance ahead. However, the slower growth in deposits could become a challenge for the bank going forward. According to the bank’s results, SBI’s standalone net profit for the first quarter of FY2026-27 increased 10.2% year-on-year to ₹21,121 crore, compared with ₹19,160 crore in the same quarter last year. Net profit also increased by 7.3% compared with the previous quarter. SBI’s net interest income (NII), which is the difference between the interest earned by the bank and the interest it pays, rose by nearly 15% year-on-year to ₹46,992 crore. For the first time, SBI’s total loan book crossed ₹50 lakh crore, reaching ₹50.47 lakh crore. However, while the bank’s asset quality improved, the slower growth in deposits remains a concern. The bank’s deposits grew at roughly half the pace of its loans. This could increase pressure on funding if the trend continues. Following the results, SBI’s share price rose by around 3%, while the stock has gained more than 1.1% over the past month. SBI April-June 2027 Results at a Glance ₹9.48 lakh crore: SBI’s market capitalisation as of June 30, 2026. ₹60.06 lakh crore: Total deposits, which increased by 9.73% year-on-year. When deposits and loans are combined, SBI’s total business crossed ₹110 lakh crore. Why did profit rise? Income up 15%, margin reaches 3% SBI’s net interest income increased by 15%, while its net interest margin (NIM) rose to 3.00%, compared with 2.9% in the same quarter last year. Operating profit increased by 9.8% to ₹33,529 crore. Meanwhile, profit growth was supported by a 32% decline in loan-loss provisions, which fell to ₹3,359 crore. This means SBI’s profit growth came not only from its core banking business but also from lower provisions for potential loan losses. Strength: Asset quality improves, net NPA falls to 0.4% SBI’s asset quality continued to improve during the quarter. The bank’s gross non-performing asset (NPA) ratio improved by 0.36 percentage points to 1.47%, while its net NPA ratio declined by 0.09 percentage points to 0.38%. The provision coverage ratio (PCR) stood at 74.20%. When including the coverage available through available collateral, the ratio rose to 91.82%. The bank’s slippage ratio, which indicates fresh loans turning bad, also improved, falling from 0.75% to 0.57%. Weakness: SBI may have to depend more on bulk deposits While loans grew strongly, deposit growth remained comparatively slow. SBI’s gross advances increased 18.63% year-on-year to ₹50.47 lakh crore, while deposits grew at a much slower pace. The bank’s total deposits increased by 9.73% to ₹60.06 lakh crore. In other words, the growth in lending was almost twice the pace of deposit growth. The share of current and savings accounts (CASA) in deposits stood at around 39.24%. This growing gap between deposits and loans could force the bank to rely more heavily on bulk deposits and other sources of funding, which could put pressure on margins in the future. Management: SBI keeps funding costs under control SBI said it continued to maintain control over its cost of funds. Interest income increased 8.54%, while interest expenses rose 5.17%. The bank’s total business, including deposits and advances, crossed ₹110 lakh crore for the first time. The credit cost stood at 0.27%. Business grew across all major segments. Retail loans increased by 18.15%, while SME loans grew 22.33% and agriculture loans increased 25.43%. Retail personal loans rose 15.15%, while corporate loans increased 18.05%. Digital Banking: Two-thirds of savings accounts now opened through YONO SBI’s digital banking operations also continued to expand. During the April-June 2027 quarter, 64% of new savings accounts were opened through the YONO app. Digital channels accounted for 98.8% of total transactions, up slightly from 98.6% in the previous quarter. This shows that SBI’s customers are increasingly using digital platforms for banking services rather than traditional branches.