State Bank of India Reports 10.2% Profit Rise and AI Shift

The State Bank of India reported a 10.23% year-on-year increase in net profit to ₹21,121 crore for the first quarter of FY2026-27. The bank saw its Net Interest Income rise 14.88% to ₹46,992 crore, while gross advances grew 18.63% to ₹50.47 lakh crore. Asset quality improved during the period, with the gross non-performing asset ratio declining to 1.47%.

Chairman Challa Sreenivasulu Setty projected credit growth between 14% and 15% for the current fiscal year, aligning the target with nominal GDP estimates of approximately 12%. Setty expects full-year deposit growth of 10% to 11%, noting a likely uptake in the second quarter driven by FCNR(B) deposits. For the April-June quarter, the bank reported an 18.2% expansion in its retail, agri, and MSME portfolio and a 21.38% increase in overseas advances.

SBI is aggressively integrating artificial intelligence into cybersecurity, fraud prevention, anti-money laundering, and coding. The bank is transitioning manual cheque processing to generative AI tools and is retraining its data science workforce as AI specialists. While the bank hired 1,500 IT specialists last year, Setty stated there has been no change in the recruitment of general bankers. Digital adoption remains high, with over 64% of savings accounts opened via the YONO platform.