SBIN

reports strong Q1 numbers

reported a robust 12.5% year-on-year (Y-o-Y) increase in net profit, reaching ₹19,160 crore in Q1 FY26. This growth was primarily driven by strong treasury gains. Revaluation gains from the investment portfolio were a significant contributor, soaring by 144.3% Y-o-Y to ₹6,326 crore. Net Interest Income (NII): NII, the core measure of a bank's profitability, saw a slight decline of 0.13% Y-o-Y to ₹41,072 crore. The Net Interest Margin (NIM) from domestic operations also fell to 3.02% from 3.15% in the previous quarter. SBI's Chairman C S Setty stated that margins are expected to improve in Q4 FY26, benefiting from a recent cut in the cash reserve ratio. Credit Growth: Gross advances grew by 11.61% Y-o-Y to ₹42.54 trillion. Retail loans were a key driver, increasing by 12.56%, with home loans growing by 15.05%. The bank has maintained a credit growth target of 12% for FY26. Deposits and Costs: The bank's total deposits increased to ₹54.73 trillion. The Cost of Funds for domestic operations rose to 5.21% in Q1 FY26, as customers locked in higher fixed deposit rates. The CASA (Current Account and Savings Account) ratio fell to 39.36% on June 30, 2025, from 40.70% a year ago. Asset Quality: The Gross Non-Performing Assets (NPA) ratio improved by 38 basis points (bps) Y-o-Y to 1.83%. The Net NPA ratio also saw an improvement of 10 bps to 0.47%. The Provision Coverage Ratio (PCR) stood at 91.71%. Capital Adequacy Ratio (CAR): The bank's CAR stood at a healthy 14.63% as of June 30, 2025. With a recent ₹25,000 crore equity capital infusion, the bank's CAR is projected to increase to 15.33%, providing a strong buffer for future growth.