State Bank of India reported faster loan growth than deposit growth and improved asset-quality ratios in the June quarter, while an October rate increase leaves funding costs in focus.
During the three months ended June 30, 2026, SBI’s net profit increased 10.23% from a year earlier to ₹21,121 crore (₹211.21 billion). Net interest income (NII), total interest income minus total interest expense, rose 14.88% to ₹46,992 crore (₹469.92 billion). The figures come from the bank’s Q1 FY27 results.
Loans, which SBI reports as advances, reached ₹50.47 trillion after rising 18.63% year over year. Deposits totaled ₹60.06 trillion, up 9.73%, a wider growth gap that puts funding costs in view as investors assess future interest income.
Asset-quality measures improved alongside earnings. The gross nonperforming asset (NPA) ratio was 1.47%, 36 basis points lower year over year, while the net NPA ratio was 0.38%, down nine basis points.
Separately, SBI’s annual report put FY2026 NII at ₹1,73,120 crore, 4.08% above FY2025.
The Reserve Bank of India (RBI) increased its policy repo rate by 25 basis points to 5.50% on Oct. 7, shifting its policy stance to calibrated tightening. The decision raises a question for SBI about the path of loan demand, deposit costs and NII; that is an inference from the policy move and company results, not guidance from SBI. RBI policymakers said their next step would depend on evolving conditions, with a further increase or no change to the rate both possible.
The RBI’s Nov. 13, 2024, list assigned SBI to bucket 4 among domestic systemically important banks. The designation carries an added common equity Tier 1 capital requirement equal to 0.80% of risk-weighted assets, effective April 1, 2025.
SBI’s calendar schedules a Q2 FY27 discussion with analysts and institutional investors on Nov. 3, 2026; no results publication date appears in the listing. The RBI’s next policy meeting is scheduled for Dec. 2-4, 2026.
