SBI Q1 FY27 Results: Net Profit Rises 10.2% as Advances Cross ₹50 Lakh Crore, NPAs Fall to Two-Decade Low
SBI Q1 FY27 Results: Net Profit Rises 10.2% as Advances Cross ₹50 Lakh Crore, NPAs Fall to Two-Decade Low
State Bank of India (SBI) delivered a strong and broad-based performance in the first quarter of FY27, supported by robust credit growth, improving asset quality and healthy operating profitability.
The bank’s Q1 FY27 analyst presentation shows that gross advances crossed the ₹50 lakh crore milestone, while deposits crossed ₹60 lakh crore. Net profit increased 10.23% year-on-year to ₹21,121 crore, even as net interest margins remained broadly stable.
At the same time, SBI’s asset quality continued to improve, with gross NPA falling to 1.47% and net NPA declining to 0.38%, which the bank describes as its lowest NPA ratios in more than two decades.
SBI Q1 FY27 Results: Key Takeaways
Net profit: ₹21,121 crore, up 10.23% YoY
Operating profit: ₹33,529 crore, up 9.77% YoY
Net Interest Income: ₹46,992 crore, up 14.88% YoY
Gross advances: ₹50.47 lakh crore, up 18.63% YoY
Deposits: ₹60.06 lakh crore, up 9.73% YoY
Gross NPA: 1.47%, down 36 bps YoY
Net NPA: 0.38%, down 9 bps YoY
Credit cost: 0.27%, compared with 0.47% a year earlier
Capital adequacy ratio: 15.67%
Domestic NIM: 3.00%
RoA: 1.11%
RoE: 17.87%
Net Profit Rises 10.23% to ₹21,121 Crore
SBI reported standalone net profit of ₹21,121 crore in Q1 FY27, compared with ₹19,160 crore in Q1 FY26, representing a year-on-year increase of 10.23%.
Operating profit increased 9.77% to ₹33,529 crore from ₹30,544 crore.
The bank’s Net Interest Income was another important growth driver. NII increased from ₹40,907 crore in Q1 FY26 to ₹46,992 crore, registering growth of 14.88%.
However, the improvement in NII came alongside relatively stable margins. Whole-bank NIM stood at 2.86%, compared with 2.89% a year earlier, while domestic NIM was 3.00% versus 3.01% in Q1 FY26.
SBI Q1 FY27 Financial Performance
| Particular | Q1 FY26 | Q1 FY27 | YoY Change |
|---|---|---|---|
| Net Interest Income | ₹40,907 Cr | ₹46,992 Cr | 14.88% |
| Operating Profit | ₹30,544 Cr | ₹33,529 Cr | 9.77% |
| Net Profit | ₹19,160 Cr | ₹21,121 Cr | 10.23% |
| Whole Bank NIM | 2.89% | 2.86% | -3 bps |
| Domestic NIM | 3.01% | 3.00% | -1 bp |
| Credit Cost | 0.47% | 0.27% | -20 bps |
| Gross NPA | 1.83% | 1.47% | -36 bps |
| Net NPA | 0.47% | 0.38% | -9 bps |
| Capital Adequacy | 14.63% | 15.67% | +104 bps |
Source: SBI Q1 FY27 Analyst Presentation.
Loan Growth Remains Strong
One of the biggest positives from the quarter was SBI’s strong credit growth.
Gross advances increased 18.63% YoY to ₹50,47,222 crore as of June 2026, compared with ₹42,54,516 crore a year earlier.
Domestic advances grew 18.15%, while advances through SBI’s foreign offices increased 21.38%.
The growth was broad-based across major lending segments.
Segment-Wise Credit Growth
| Segment | Advances as of Jun 2026 | YoY Growth |
|---|---|---|
| Retail Personal | ₹17,73,147 Cr | 15.15% |
| Agriculture | ₹4,36,820 Cr | 25.43% |
| SME | ₹6,46,030 Cr | 22.33% |
| Corporate | ₹14,20,652 Cr | 18.05% |
| Domestic Advances | ₹42,76,648 Cr | 18.15% |
| Whole Bank Advances | ₹50,47,222 Cr | 18.63% |
Agriculture and SME were particularly strong, growing 25.43% and 22.33%, respectively. Corporate advances increased 18.05%, while retail personal loans grew 15.15%.
Retail Banking Continues to Drive Growth
SBI’s retail personal loan portfolio reached approximately ₹17.7 lakh crore as of June 2026.
The portfolio has recorded approximately 14% three-year CAGR and accounted for around 41.5% of domestic advances.
Within retail lending, home loans remained the largest component, while other retail loans also recorded strong growth.
SBI’s diversified retail portfolio includes home loans, Xpress Credit, auto loans, personal gold loans and other personal segment loans.
Deposits Cross ₹60 Lakh Crore
SBI’s total deposits increased 9.73% YoY to ₹60,05,805 crore as of June 2026 from ₹54,73,254 crore a year earlier.
Retail term deposits grew 14.39%, while savings bank deposits increased 9.30%.
Domestic deposits had a mix of approximately 60.76% term deposits, 33.43% savings deposits and 5.81% current account deposits. The CASA ratio stood at 39.24%.
The deposit growth is lower than loan growth, which is an important metric investors will continue to monitor as SBI expands its credit book.
Asset Quality Improves to Two-Decade Low
Asset quality was another major strength in SBI’s Q1 FY27 performance.
Gross NPA declined to 1.47% from 1.83% in Q1 FY26, while net NPA declined to 0.38% from 0.47%.
The bank’s gross NPA amount stood at ₹74,272 crore at the end of June 2026, compared with ₹78,040 crore in June 2025.
SBI’s credit cost also declined significantly to 0.27% from 0.47% a year earlier.
SBI Asset Quality
| Metric | Q1 FY26 | Q1 FY27 |
|---|---|---|
| Gross NPA | 1.83% | 1.47% |
| Net NPA | 0.47% | 0.38% |
| Credit Cost | 0.47% | 0.27% |
| PCR | 74.49% | 74.20% |
| PCR including AUCA | 91.71% | 91.82% |
The presentation also shows continued improvement in the gross NPA ratio over recent quarters, from 1.83% in June 2025 to 1.47% in June 2026.
Corporate Asset Quality Shows Further Improvement
SBI’s corporate loan book also appears healthier.
Corporate NPAs declined from ₹17,157 crore in June 2025 to ₹11,784 crore in June 2026, while the corporate NPA ratio fell from 1.43% to just 0.83%.
International advances reported an even lower NPA ratio of 0.12%.
This improvement is important because corporate asset quality has historically been a key factor influencing the profitability of large public-sector banks.
Strong Capital Position
SBI entered FY27 with a strong capital buffer.
The bank’s capital adequacy ratio increased to 15.67% in June 2026 from 14.63% in June 2025.
The CET-1 ratio was 12.89%, while the Tier-1 ratio stood at 14.66% and the total capital ratio at 15.67%.
The higher capital buffer gives SBI additional capacity to support its loan growth while maintaining regulatory headroom.
NIM Remains Under Watch
Although NII grew strongly, margins remained under some pressure.
Whole-bank NIM declined three basis points year-on-year to 2.86%, while domestic NIM declined one basis point to 3.00%.
However, SBI’s domestic NIM improved sequentially by 7 basis points compared with Q4 FY26, which is a positive signal for investors.
The bank’s domestic yield on advances was 8.20% in June 2026, while domestic cost of deposits stood at 4.85%. The presentation shows a gradual moderation in both yields and deposit costs over recent quarters.
For investors, the direction of NIM will remain an important factor to watch as credit growth stays strong.
SBI’s Digital Banking Push Continues
SBI continues to increase its reliance on digital and alternate channels.
As of Q1 FY27, 98.8% of transactions were conducted through alternate channels.
The bank had 10.5 crore registered YONO customers, while the new YONO platform had more than 5 crore registrations.
SBI also reported strong digital adoption across mobile banking, ATMs and debit card transactions.
The bank had market shares of approximately:
23.65% in debit card spends
31.04% in ATMs
29.40% in mobile banking transaction volume
24.83% in mobile banking transaction value
YONO and AI Emerging as Important Growth Tools
SBI is increasingly using technology, analytics, artificial intelligence and digital lending to improve customer acquisition and operational efficiency.
During Q1 FY27, analytical leads generated advances of ₹1,80,518 crore, up from ₹1,37,357 crore in FY26.
The bank also reported digital loans of ₹3,381 crore during the quarter.
SBI is also experimenting with generative and agentic AI applications, including a customer-facing YONO Business chatbot and AI-based cheque-processing workflows.
The bank said its AI initiatives are aimed at reducing turnaround times, improving controls and simplifying customer journeys.
SBI’s Subsidiaries Add to the Franchise
SBI’s wider group continues to provide diversification beyond traditional banking.
SBI Life reported Q1 FY27 PAT of ₹725 crore, up from ₹594 crore in Q1 FY26. Its new business premium grew 23% to ₹8,908 crore, while Value of New Business increased 29% to ₹1,408 crore.
SBI Cards reported Q1 FY27 PAT of ₹664 crore, up 19% YoY. Cards-in-force grew 7%, spends increased 27% and receivables rose 3%. Its ROE stood at 16.5%.
SBI Funds Management continued to be a major subsidiary, with quarterly average mutual fund AUM of ₹12.61 lakh crore and a market share of 15.12%.
The group also has businesses spanning general insurance, capital markets, payments and securities.
SBI Group Performance
At the consolidated group level, interest earned increased 8.50% to ₹1,36,240 crore in Q1 FY27.
Total income increased 7.83% to ₹1,80,062 crore, while operating profit increased 12% to ₹38,632 crore.
Group net profit rose 13.73% to ₹24,113 crore from ₹21,201 crore in Q1 FY26.
SBI Group Q1 FY27
| Particular | Q1 FY26 | Q1 FY27 | YoY Growth |
|---|---|---|---|
| Interest Earned | ₹1,25,563 Cr | ₹1,36,240 Cr | 8.50% |
| Non-Interest Income | ₹41,429 Cr | ₹43,821 Cr | 5.78% |
| Total Income | ₹1,66,992 Cr | ₹1,80,062 Cr | 7.83% |
| Operating Profit | ₹34,493 Cr | ₹38,632 Cr | 12.00% |
| Net Profit | ₹21,201 Cr | ₹24,113 Cr | 13.73% |
Financial Inclusion and Sustainability
SBI’s presentation also highlighted its financial inclusion and sustainability initiatives.
The bank reported a workforce of 2,47,281, including 28.7% women employees, and operated through 79,557 business correspondent outlets.
Its sustainable finance sanctioned portfolio stood at ₹1,94,759 crore in fund-based financing and ₹21,667 crore in non-fund-based financing.
SBI also reported that more than 71 GW of renewable energy capacity had been financed through its portfolio.
The bank spent approximately ₹24 crore on CSR activities during Q1 FY27, with initiatives spanning healthcare, sanitation, education, environment and women’s empowerment.
Key Positives for SBI Investors
Net profit growth remains healthy, with standalone PAT rising 10.23% YoY.
NII grew 14.88%, providing strong core banking income growth.
Credit growth of 18.63% is significantly ahead of deposit growth.
Gross and net NPAs have fallen sharply, reaching multi-decade lows.
Credit cost declined to 0.27%, supporting profitability.
Capital adequacy improved to 15.67%, providing a strong capital cushion.
Retail, agriculture, SME and corporate lending all recorded strong growth.
SBI’s digital ecosystem and YONO platform continue to expand.
Key Risks and Concerns
Despite the strong quarter, investors should keep an eye on several factors.
Deposit Growth Versus Credit Growth
Advances grew 18.63%, while deposits grew 9.73%. If this gap persists, funding costs and the bank’s credit-deposit ratio could become increasingly important.
Margin Pressure
Whole-bank NIM declined to 2.86% from 2.89% a year ago. A sustained decline in margins could limit the benefit of strong loan growth.
Execution of Rapid Credit Growth
With advances growing at nearly 19%, maintaining underwriting standards and asset quality will remain important.
Future Slippages
Although NPAs are at very low levels, fresh slippages remain a metric to monitor as the loan book expands rapidly.
Disclaimer: This article is based on information disclosed in SBI’s Q1 FY27 Analyst Presentation and is intended for informational purposes only. It should not be considered investment advice. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.