On Friday, State Bank of India reported a 10.2% growth in Q1 standalone net profit to ₹21,121 crore. This solid financial performance was highlighted by its non-performing assets falling to their lowest levels in over twenty years.
₹21,121 crore
Standalone Net Profit
Q1 FY26: ₹19,162 crore→₹21,121 crore
⏳ Time Machine
How today’s news fits into the bigger picture
2015
Asset Quality Review
The RBI forces Indian banks to recognize hidden bad loans, initiating a painful multi-year cleanup process.
2018
SBI's NPA Peak
SBI's gross NPA ratio hits a record 10.91% as corporate defaults peak, leading to historic quarterly losses.
2024
Deposit War Begins
RBI warns lenders about credit outstripping deposits, forcing banks to hike deposit rates and squeeze margins.
Today
SBI reports Q1 FY27 profit of ₹21,121 crore with bad loans at a 20-year low.
What happens next?
PNB and other major public sector banks will report their Q1 results later this month, showing if the asset quality trend is system-wide.
State Bank of India reported its Q1 FY27 results on Friday, posting a standalone net profit of ₹21,121 crore, up 10.2% year-on-year. While profit growth was steady, the real highlight was the bank's asset quality. The gross non-performing asset (NPA) ratio plummeted to its lowest level in over two decades, supported by a significant decline in new loan slippages. However, the quarter was not without challenges. Like its private peers, SBI faced compression in its Net Interest Margin (NIM) due to the rising cost of deposits as savers shifted funds to higher-yielding instruments. Despite this deposit squeeze, the public-sector giant maintained double-digit credit growth, driven by retail and corporate lending. With no other major PSU bank having reported full Q1 results yet, SBI's numbers set a strong benchmark for the public banking sector.
💭 If you're wondering…
A slippage occurs when a standard, well-performing loan turns into a non-performing asset (NPA) because the borrower has failed to pay the interest or principal installment for more than 90 days.
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Official sources
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