State Bank of India (SBI) has reported its highest-ever quarterly profit and lowest non-performing assets (NPAs) ratio in over two decades while loan growth has been strong during the fiscal first-quarter ended June.

The country’s largest lender has posted a 10.23% rise in net profit of Rs 21,121 crore for the June quarter, compared to Rs 19,160 crore a year ago. 

The higher-than-expected profit has been backed by strong growth in net interest income (NII), lowering in bad-loan provisions and a healthy cost-to-income ratio.

The bank’s total business surpassed the Rs 110-lakh-crore mark, with the loan book at Rs 50.47 lakh crore as of 30 June, up 18.63% year-on-year, and deposits at Rs 60.06 lakh crore, up 9.73%. Deposits continued to lag behind loan growth, a trend visible across the sector as consumers are moving to other avenues where returns are higher.

SBI chairman CS Setty said the bank has garnered $6 billion in foreign currency non-resident (Bank), or FCNR(B), deposits under the Reserve Bank of India’s concessional swap facility. Another $1 billion has come via overseas foreign currency borrowings (OFCBs) and $300 million through external commercial borrowings.

“The bank is on track to raise $10 billion in FCNR(B) deposits until 30 September. The inflows would help to replace high-cost bulk deposits and lower funding costs,” Setty said. 

The RBI closes the swap window for FCNR(B) deposits on 30 September.

The bank’s operating profit increased 9.77% to Rs 33,529 crore. While interest income grew 8.5% to Rs 1.28 lakh crore, non-interest income declined 9.07% to Rs 15,923 crore in the June quarter.

The lender’s NII, the difference between interest earned on loans and paid on deposits, rose 14.88% year-on-year to Rs 46,992 crore.

Domestic net interest margin (NIM) stood at 3% in the June quarter, widening by 7 basis points from the preceding three months but declining by 1 bps from the year earlier. 

Setty retained guidance for a 3% full-fiscal NIM, while projecting loan growth of 14-15% and deposit growth of 10-11% for FY27.

The state-owned lender’s loan book grew 18.63% year-on-year to Rs 50.47 lakh crore, representing the sector’s broad-based credit growth as corporates borrowed more to spend on working capital. The bank’s retail credit also surged including gold loans, but the auto segment saw below double-digit growth.

The bank’s domestic loan book grew 18.15% YoY to Rs 42.77 lakh crore in the June quarter. While corporate loans rose 18.05% to Rs 14.21 lakh crore, the RAM (retail, agriculture and MSME) segment also saw robust growth. While RAM comprised 66.78% of the bank’s total loan as on 30 June 2026.8, the corporate segment made up for the remaining 33.2% share.

SBI managing director Ashwini Kumar Tewari said corporate advances was driven by demand from infrastructure sectors such as renewable energy and data centres. The loan pipeline exceeds Rs 9 lakh crore, including term loans undisbursed and working capital not utilised. In the June quarter, 16% of the corporate loan growth came from working capital and 21% from term loans.

The retail personal portfolio grew 15.15% to Rs 17.73 lakh crore, SME (small and medium enterprises) was up 22.33% to Rs 6.46 lakh crore and agri rose 25.43% to Rs 4.37 lakh crore. 

The bank’s gold loan portfolio stood at Rs 3.1 lakh crore as of 30 June. SBI managing director Rama Mohan Rao Amara said the bank's personal gold loans stood at Rs 1.25 lakh crore, up 97.54% YoY, while agriculture gold loans were at Rs 1.85 lakh crore.

Domestic deposits grew 9.64% YoY to Rs 57.61 lakh crore. The low-cost CASA (current account savings account) deposits ratio stood at 39.24%.

The bank’s gross non-performing assets (NPA) declined to 1.47% of total loans from 1.49% a quarter earlier and 1.83% a year ago. Net NPA fell to 0.38% as on 30 June, down by 1 bps from three months earlier and by 9 bps a year earlier. 

“This is the lowest NPA ratios in over two decades ago,” Setty said.

Total slippages were at Rs 7,046 crore, mainly from the retail portfolio, compared to Rs 5,521 crore in the preceding quarter and Rs 7,945 crore a year ago.

Amara said nearly 40% of the fresh slippages had already been upgraded back to standard assets.

The provision coverage ratio (PCR) was at 74.20%. The PCR, including written off assets, was at 91.82% as of 30 June.