Net profit increased 10.2 percent, NII up 15 percent year over year, and asset quality improved in SBI’s Q1 earnings, which above Street projections. The stock increased by more than 3%.
For the April–June quarter of FY27, State Bank of India (SBI) reported a 10.2 percent year-over-year increase in net profit to Rs 21,121 crore, exceeding the CNBC–TV18 poll estimate of Rs 19,145 crore. In the same period last year, the biggest lender in the nation earned a net profit of Rs 19,160 crore.
From Rs 40,907 crore to Rs 46,992 crore, net interest income (NII) increased by 15% annually. Additionally, the amount exceeded the CNBC-TV18 poll prediction of Rs 45,800 crore. In contrast to the poll forecast of Rs 30,004 crore, pre-provisioning operating profit (PPoP) for the quarter was Rs 33,530 crore.
A sequential improvement in asset quality was also noted by SBI. The net NPA ratio decreased to 0.38 percent from 0.39 percent, while gross non-performing assets (NPAs) decreased to 1.47 percent from 1.49 percent in the previous quarter.
Following the findings, SBI shares increased even more, closing Friday at Rs 1,119.80, up 3.21 percent.
