State Bank of India’s fiscal first quarter net profit rose 12.48% to Rs 19,160 crore from Rs 17,035 crore a year ago, amid rise in other income and stable asset quality.

The lender’s other income jumped 54% to Rs 17,345 crore from 11,162 crore in the same quarter of the previous fiscal.

Operating profit rose 15.49% to Rs 30,544 crore from Rs 26,449 crore. Loan-loss provisions rose 9.21% year-on-year to Rs 4,934 crore.

NII and NIM

Net interest income (NII) fell marginally to Rs 41,072 crore in the June quarter from Rs 41,125 crore a year ago. Sequentially, NII fell 3.98%.

Net interest margin (NIM) declined by 33 basis points to 3.02% in the June quarter compared to 3.35% in the earlier-year. Sequentially, it was at 3.15%, down by 13 basis points.

Asset quality

The country’s largest lender had gross non-performing assets (NPAs) at 1.83% as of 30 June as against 1.82% in the previous three months. A year ago, gross NPA was at 2.21%.

 Net NPA stood at 0.47%, the same as in the March quarter. In the earlier-year, net NPA was at 0.57%.

Slippages

Fresh slippages stood at Rs 7,942 crore, with Rs 2,602 crore coming from personal loans, Rs 2,680 crore from SMEs (small and medium enterprises), Rs 2,464 crore from agriculture and Rs 196 crore from commercial clients group. The bank has already seen recovery and upgrade of Rs 1,585 crore from these slippages in Q2 so far.

The slippage ratio was at 0.75% as on 30 June, compared to 0.42% in the preceding quarter. Credit cost was at 0.47% versus 0.39% in the March quarter.

The provisioning coverage ratio was at 74.49% as against 74.42% in the March quarter.

Recovery 

The income from written-off accounts is Rs 1,229 crore in the June quarter versus Rs 1,008 crore a year ago. The management expects to achieve full-fiscal recovery of Rs 7,000-8,000 crore.

Loan book

Gross advances rose 11.61% to Rs 42.55 lakh crore as on 30 June 2025. The retail personal loan book grew 12.56% year-on-year to Rs 15.40 lakh crore, of which home loans stood at 8.51 lakh crore, up 15.05%. Agriculture loans grew by 12.67% YoY to Rs 3.5 lakh crore and SME loans by 19.10%.

The corporate loan book grew slower at 5.70% to Rs 12.03 lakh crore versus Rs 11.39 lakh crore a year ago. 

Deposits

On the deposit front, SBI reported a 11.66% YoY growth to Rs 54.73 lakh crore as on 30 June 2025. The low-cost CASA (current account savings account) deposits grew 8.05% YoY to Rs 19.14 lakh crore. 

The bank’s CASA ratio fell to 39.36% as on 30 June, from 40.70 a year ago and 39.97% a quarter ago.

Guidance

The bank has guided to 12% YoY growth in advances and 10% growth in deposits for FY26. The target for NIM is 3%.