State Bank of India NII Rises 14.88% on Loan Growth
Net interest income for the lender reached ₹46,992 crores in the first quarter of fiscal 2027 [1][3].
State Bank of India (SBI), the largest lender in India, reported net interest income of ₹46,992 crores for the first quarter of fiscal 2027, a 14.88% increase from the ₹40,907 crores recorded in the first quarter of fiscal 2026.
Loan expansion drove the top-line growth. Whole bank advances grew 18.63% year-over-year in the first quarter of fiscal 2027, an acceleration from the 15.14% growth seen in the third quarter of fiscal 2026 and 11.61% in the first quarter of fiscal 2026.
Sector-specific lending showed significant momentum. Agri advances growth reached 25.43% year-over-year in the first quarter of fiscal 2027, compared to 16.56% in the third quarter of fiscal 2026 and 12.67% in the first quarter of fiscal 2026. SME advances grew 22.33% year-over-year, slightly above the 21.02% growth in the third quarter of fiscal 2026 and 19.10% in the first quarter of fiscal 2026.
Margins showed modest recovery from the previous quarter. Domestic net interest margin (NIM) was 3.00% in the first quarter of fiscal 2027, an improvement of 7 bps over the 2.93% reported in the fourth quarter of fiscal 2026, though it was 1 bp lower than the 3.01% seen in the first quarter of fiscal 2026. Whole bank NIM rose 5 bps over the fourth quarter of fiscal 2026 to reach 2.86%.
Funding growth lagged loan expansion. Whole bank deposits grew 9.73% year-over-year in the first quarter of fiscal 2027, a deceleration from the 11.66% growth reported in the first quarter of fiscal 2026.
Asset quality metrics improved across the board. The gross NPA ratio fell 36 bps year-over-year to 1.47% from 1.83% in the first quarter of fiscal 2026. The net NPA ratio improved 9 bps year-over-year to 0.38%, compared to 0.47% in the first quarter of fiscal 2026.
Credit costs and slippages trended lower. The slippage ratio for the first quarter of fiscal 2027 was 0.57%, an improvement of 18 bps over the 0.75% reported in the first quarter of fiscal 2026. Credit cost for the period was 0.27%, down from 0.47% in the first quarter of fiscal 2026 and 0.29% in the third quarter of fiscal 2026.