Treasury, forex gains help SBI post 10% growth in Q1

State Bank of India on Friday reported a 9.71 per cent increase in its consolidated net profit to Rs 21,201 crore in the June quarter, helped by a handsome performance on the treasury and forex income.

On a standalone basis, the country’s largest lender’s net profit grew to Rs 19,160 crore from Rs 17,035 crore in the year-ago period.

Despite an 11.6 per cent jump in overall advances, the core net interest income declined by 0.13 per cent to Rs 41,072 crore, as net interest margins contracted by 0.33 per cent to 3.02 per cent, following the RBI’s deep rate cuts and the time taken for deposit rate repricing impacted the spreads.

Its chairman CS Setty told reporters that the NIMs will follow a U-shaped trajectory in FY26, pointing out that there will be challenges on NIMs in the second quarter before the number inches up, and added that it aims to have a NIM (net interest margin) of 3 per cent for FY26 on an annual basis.

A 55 per cent jump in the overall non-interest income at Rs 17,346 crore helped the bank. This was led by a 352 per cent rise in forex income at Rs 1,632 crore.