State Bank of India reports lowest NPA ratio in over two decades in Q1 FY27; slippages decline YoY

The country’s largest bank registered a gross NPA ratio declining by 36 basis points year-on-year (YoY) to 1.47%. The net NPA ratio also improved by 9 basis points annually to 0.38%. This was the lowest NPA ratio the bank registered in more than two decades, it said in the investors’ presentation.

In terms of international banking, State Bank of India’s (SBI) gross NPA ratio slipped 7 bps on YoY basis, “showing declining trend, underlining high quality of assets booked.”

The bank’s provision coverage ratio (PCR) stood at 74.20%, while PCR including AUCA was reported at 91.82%, indicating the extent of provisioning against stressed assets.

Slippages for Q1FY27 showed improvement, with the slippage ratio declining by 18 basis points YoY to 0.57%. Credit cost for the quarter was reported at 0.27%.

Q1 FY27 earnings

SBI reported a net profit of ₹21,121 crore in the first quarter of the current financial year, marking an increase of 10% from ₹19,160 crore in the same period last year.

The bank's net interest income (NII), or the difference between interest earned on loans and expended on deposits, rose 12% to ₹46,992 crore in the April-June period compared with ₹41,907 crore in the year-ago period.

The domestic net interest margin (NIM) for Q1 FY27 stood at 3%, improving 7 bps sequentially. The whole bank's NIM was seen at 2.86% in Q1FY27, improved by 5 bps quarter-on-quarter (QoQ).

The lender's business crossed ₹110 lakh crore during the reporting quarter, while the deposits and advances crossed ₹60 lakh crore and ₹50 lakh crore, respectively.

International banking

Furthermore, SBI said it has registered consistent growth in customer credit of international banking on a QoQ basis on the back of US operations, London, GIFT City, Middle East and East Asia region branches.

For the international banking segment, SBI’s gross advances grew 21.38% on a YoY basis (in dollar terms, YoY growth of 9.97%). Its external commercial borrowings, local credit and trade finance business are major drivers of customer credit.

SBI's whole bank advances rose 19% annually, with domestic advances rising at 18.15%.

SBI share price trends

Shares of SBI surged as much as 3.6% to hit an intraday high of ₹1,124.50 per equity share following the earnings, compared with the closing price of ₹1,085 apiece in the previous trading session.

The shares have advanced more than 8% in the past week and 7% over the month. They have jumped 13% on a year-to-date (YTD) basis.

At the time of writing the piece, SBI shares were trading at ₹1,118.40 apiece on the National Stock Exchange, gaining 3.08%.

Shares of the company had touched their one-year high of ₹1,234.70 apiece on February 24, 2026, while their 52-week low of ₹790 was hit on August 8, 2025.

According to NSE data, the lender has a market capitalisation of ₹10.33 lakh crore.