State Bank of India (FRA:SID)

Q1 2027 State Bank of India Earnings Call Transcript

Aug 7, 2026 / 11:45 AM GMT

Transcript

Key Points

Positve

State Bank of India (SBKFF) reported a record net profit of 21,121 crore rupees for Q1 FY27, supported by healthy operating performance and disciplined cost management.
The bank's domestic net interest margin (NIM) remained resilient at 3%, reinforcing confidence in maintaining its full-year guidance.
Asset quality improved further, with gross and net NPA ratios reaching their lowest levels in over two decades, reflecting disciplined underwriting and improved collection mechanisms.
The bank's CASA franchise remains one of the strongest in the industry, with retail term deposits growing 14% and savings bank balances growing 10%, providing a stable and cost-effective funding base.
Digital transformation initiatives, including the new Yono platform, AI-powered assistant Yonogi, and digital re-KYC journey, are driving customer adoption, productivity, and operational efficiency.
The successful listing of SBI Funds Management Limited marks a significant milestone in unlocking value within the SBI Group, with potential for further divestments.
The bank has a strong capital position and ample liquidity, with excess SLR of over 3 lakh crore, providing flexibility to support future growth.
Fee income has shown strong growth, with management targeting an increase from 15% to 20% of overall income, focusing on areas like loan processing charges and government business.
The bank is building a strong pipeline for corporate credit, exceeding 9 lakh crore, including opportunities in emerging sectors like data centers, green energy, and M&A financing.
Management is investing in a full-fledged collection vertical with feet-on-street deployment to deepen product penetration in self-employed and professional segments, which could improve yields.

Negative

Deposit growth was muted at only 0.5% sequentially, as the bank chose to avoid expensive bulk deposits in a highly competitive environment, potentially limiting balance sheet expansion.
Overall business growth of 1.33% was lower compared to other banks, with the bank's credit growth guidance of 14-15% seen as conservative relative to the 18% reported in Q1.
There was an uptick in absolute gross and net NPA numbers for the first time in many quarters, with fresh slippages rising to 7,046 crore rupees, though 1,400 crore has been pulled back.
SMA 2 numbers doubled sequentially, indicating potential early signs of stress in the system, which could impact future asset quality.
Other provisions increased to 1,270 crore rupees from a reversal of 366 crore in the previous quarter, partly due to the amortization of PLI provisions over four quarters.
The bank's corporate loan book saw flat sequential growth, partly due to the transition from T-bill to MCLR pricing, which may have led some customers to seek alternatives.
Forex revenues were significantly lower at 500 crore rupees due to NOP guidelines, impacting non-interest income.
The bank's personal loan growth is lagging behind NBFCs, as it has not yet tapped into the self-employed segment due to a lack of a strong collection mechanism, which is still being built.
The implementation of the expected credit loss (ECL) framework is still in progress, with no numbers provided yet, creating uncertainty about its impact on capital and credit costs.
Current account growth remained weak at 4-5% year-on-year, with government balances drying up, though non-government current accounts grew 14%.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SBI.NS - State Bank of India
Q1 2027 State Bank of India Earnings Call
Aug 07, 2026 / 11:45AM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good evening, ladies and gentlemen.

I am Pawan Kumar, General Manager, Performance Planning and Review Department of the Bank.

On behalf of the State Bank of India, I am delighted to welcome the analysts, investors, colleagues and everyone present here today on the occasion of the declaration of the quarter one financial year '27 results of the Bank.

I also extend a very warm welcome to all the people who are assessing the event. Through our live webcast.

We have with us on the stage our Chairman Sir, Shri CS Shetty, our Managing Director Corporate Banking and Subsidiaries Shri Ashwini Kumat Tiwari, our Managing Director International Banking, Global Markets and Technology Shri Ranashtosh Kumar

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.