Mumbai: India’s largest public sector bank, SBI, has reported a net profit of Rs.19,160 crore in Q1FY26, a growth of 12% from Rs.17,075 crore from the same quarter last year. The PSU’s net interest income fell marginally from Rs.41,126 crore to Rs.41,072 crore this year. Besides this, other income in the quarter rose from Rs.11,162 crore to Rs.17,345 crore, a 55% increase.
Analysts had expected the net profit to rise to Rs.17,095 crore. The bank, however, managed to beat this by streamlining its operations and controlling its expenses better. Following this, its operating profit also rose from Rs.26,449 crore in Q1FY25 to Rs.30,544 crore in Q1FY26.
The bank’s Gross NPA increased marginally from Rs.76,880 crore in the last quarter (Q4FY25) to Rs.78,039 crore, a 1.5% increase.
On the other hand, the bank’s total deposits grew from Rs.49.01 lakh crore to Rs.54.73 lakh crore, a 12% rise.
As India’s biggest PSU Bank, SBI has been crucial in financing large-scale infrastructure projects and offering a wide range of investment and insurance services through its subsidiaries. However, the company is facing challenges in understanding new technologies used for long-term industrial projects- green energy, battery storage, etc. which is hampering its reach to lend to such borrowers. The bank is also looking to upgrade its digital infrastructure to meet real-world needs, using AI and data analytics to stay ahead of the game.
Despite all of this, many analysts still maintain a ‘buy’ rating for SBI, as it has managed to deal with its liabilities comfortably and improve its asset quality.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
