SBI shows strong results in the first quarter; profit rises by 13.7% to ₹24,113 crore, NPA improves

The State Bank of India (SBI), the country's largest lender, announced a 13.73 percent increase in consolidated net profit for the June quarter, reaching INR 24,113 crore.

Previously, the bank recorded a net profit of INR 21,201.47 crore for the year and INR 19,642.87 crore in the previous March quarter.

According to regulatory filings, on an individual basis, the bank's net profit increased by 10.23 percent compared to last year, amounting to INR 21,121.22 crore, compared to INR 19,160.44 crore for the period April-June 2025.

Total income grew to INR 1.43 trillion from INR 1.35 trillion a year earlier, while total expenses increased to INR 1.10 trillion compared to INR 1.04 trillion.

Provisions for bad assets decreased to INR 3,359 crore in the June quarter, down from INR 4,934 crore a year ago, but they were higher than INR 3,140 crore in the preceding quarter.

The gross non-performing asset ratio improved to 1.47 percent as of June 30, 2026, up from 1.49 percent at the end of March and 1.83 percent a year earlier.

The bank's overall capital adequacy ratio stood at 15.67 percent as of June 30, including a base buffer of 12.89 percent.

SBI shares traded on the BSE with a gain of 2.13 percent at a price of INR 1,108.

The leading stock exchange BSE Ltd reported on Tuesday a significant increase in consolidated net profit by 62 percent, reaching 872.66 crore rupees for the quarter ending in June 2026. This growth was driven by a strong increase in revenues.

In the reporting quarter, the exchange earned a net profit of 538 crore rupees in the same period last fiscal year. BSE's total revenue increased by 63 percent, amounting to 1,706.72 crore rupees in the June quarter compared to 1,044.45 crore rupees a year earlier, according to regulatory filings with NSE.

Furthermore, looking at sequential change, net profit increased by almost 10 percent compared to the quarter of March 2026, which showed a net profit of 795.47 crore rupees, and total revenue grew from 1,630 crore rupees.

The exchange's total expenses rose to 536.69 crore rupees in the June quarter, whereas they were 359.34 crore rupees a year ago. Major expenses include regulatory contributions of 192.78 crore rupees, clearing and settlement costs of 90.28 crore rupees, employee benefits expenses of 87.05 crore rupees, and technology costs of 60.82 crore rupees.

Tata Capital, a Non-Banking Financial Company (NBFC), reported a significant increase in its consolidated net profit by 56% compared to the same period last year. For the quarter covering April-June 2027 (Q1 FY27), net profit reached INR 1,547 crore, driven by steady growth in the loan portfolio.

Company Financial Performance

The NBFC's Net Interest Income (NII) increased by 25% year-on-year to INR 3,571 crore. Meanwhile, total income grew by 23% year-on-year, reaching INR 4,455 crore.

Asset and Loan Portfolio Growth

By the end of June, the gross loan volume increased by 23% year-on-year to INR 2.86 trillion. Assets Under Management (AUM) showed a year-on-year growth of 22%, amounting to INR 2.90 trillion. Among these assets, retail and SME loans accounted for 85.4% of the net AUM.

Asset Quality and Regulatory Metrics

As of June 30, 2026, the proportion of Stage 3 gross assets was 1.9%, an improvement from 2% on March 31, 2026. Net Stage 3 assets decreased to 0.8% from 0.9% on March 31, 2026. The top-tier NBFC's Capital Adequacy Ratio (CRAR) stood at 18.5% as of June 30, 2026, which is lower than the 19% recorded on March 31, 2026, but higher than 16.5% on June 30, 2025.

Management Comments

Rajiv Sabharwal, Managing Director and CEO of the company, noted that the company did not register any impact from monsoons on its portfolio and expressed hope for a good rainy season that would support the development of rural markets. He also emphasized that Artificial Intelligence (AI) and digital capabilities are key elements supporting the company, and the benefits of technology investments are becoming increasingly evident in the processes of acquisition, underwriting, operations, payment collection, and servicing.