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State Bank of India reported a 13.73% year-on-year rise in consolidated net profit for the June quarter, supported by higher core income and lower provisions. Standalone net profit also increased 10.23% from a year earlier. The bank’s net interest income grew nearly 15%, helped by strong growth in gross advances, although its domestic net interest margin remained under pressure. SBI also reported lower fresh slippages and an improvement in its gross non-performing asset ratio. The bank expects credit growth of 14-15% in FY27, supported by deposit growth of 10-11%.
State Bank of India reported a 13.73% year-on-year increase in consolidated net profit for the June quarter to INR 24,113 crore, supported by an improvement in core income and a decline in provisions. On a standalone basis, the bank’s net profit rose 10.23% year-on-year to INR 21,121.22 crore, compared with INR 19,160.44 crore in the corresponding quarter last year, according to an exchange filing.
SBI’s core net interest income increased nearly 15% to INR 46,992 crore, supported by an 18.63% rise in gross advances. However, the domestic net interest margin contracted to 3%. On a quarter-on-quarter basis, the NIM improved by 0.07 percentage points.
Non-interest income declined 9% to INR 15,293 crore, mainly due to a 70% fall in income from foreign exchange and derivatives. The bank recorded deposit growth of 9.73%, while the share of low-cost current account and savings account deposits declined 0.12 percentage points year-on-year to 39.36%.
SBI Chairman C S Setty said the bank is targeting credit growth of 14-15% in FY27 and expects deposit growth of 10-11% to support this expansion. The bank has mobilised USD 6 billion through the FCNR(B) window since the scheme began and expects the amount to reach up to USD 10 billion before the special window closes in September, Setty said.
Fresh slippages stood at INR 7,046 crore, lower than INR 7,945 crore in the year-ago period but higher than INR 5,521 crore in the March quarter. The gross non-performing asset ratio improved to 1.47% as of the end of June, compared with 1.49% at the end of March and 1.83% a year earlier.
Advances that remained unpaid for 31-89 days but had not yet been classified as NPAs increased to INR 4,174 crore from INR 3,350 crore in March. Provisions for non-performing assets fell to INR 3,359 crore from INR 4,934 crore a year earlier, although they were higher than INR 3,140 crore in the previous quarter.
SBI’s overall capital adequacy ratio stood at 15.67% at the end of June, including a core capital buffer of 12.89%. SBI shares settled at INR 1,096.05 on the BSE, up 1.03%.
Source PTI
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