State Bank of India (SBIN) Q1 25/26 earnings summary

Executive summary

• Net profit for Q1 FY26 reached INR 19,160 crore, up 12.48% year-over-year, with group profit at INR 21,201 crore compared to INR 19,325 crore in the previous quarter, driven by operating efficiency and controlled expenses.

• Domestic market share sustained above 22%, with deposits surpassing ₹54 lakh crore and current account balances up 30.69% YoY.

• Advances grew 11.61% YoY to ₹42.5 lakh crore; domestic credit to deposit ratio at 68.88%.

• Asset quality improved with GNPA at 1.83%, NNPA at 0.47%, and slippage ratio at 0.75%.

• 98.6% of transactions conducted through alternate channels; 9.04 crore YONO users, with 66% of new savings accounts opened via YONO.

Financial highlights

• Net interest income for Q1FY26 was ₹41,072 crore, nearly flat YoY; operating profit rose 15.49% YoY to ₹30,544 crore.

• Fee income grew 10.91% YoY; forex income surged 352% YoY.

• Cost-to-income ratio improved to 47.71% from 49.42% YoY; cost to assets at 1.66%.

• Net NPA ratio declined by 10 bps to 0.47%; slippage ratio improved by 9 bps to 0.75%; PCR at 74.49%.

• AFS reserves increased to INR 7,700 crore from INR 6,600 crore last quarter.

Outlook and guidance

• Expect credit expansion to outpace nominal GDP and industry growth, driven by retail loans, government CapEx, and green energy projects.

• Guidance maintained for ROA above 1% and NIM at 3% for FY26, with NIM expected to bottom in Q2 and improve in H2.

• Corporate credit growth expected to return to double digits from next quarter, supported by a robust INR 7.2 lakh crore pipeline.

• Cost-to-income ratio targeted to remain below 50% through the cycle.

• CRAR buffer of 3.56% above regulatory requirement supports credit growth of ~₹12.5 lakh crore.