State Bank of India Sees Strong Q2 Growth with 14.28% Rise in Net Profit

GUWAHATI: State Bank of India (SBI) reported a 14.28 per cent year-on-year increase in net profit to Rs 23,038 crore in the second quarter of the 2026-27 financial year, compared with Rs 20,160 crore in the corresponding quarter of the previous year.

The bank's operating profit rose 7.28 per cent year-on-year to Rs 34,226 crore, while net interest income increased by 14.69 per cent to Rs 49,143 crore during the quarter. Profit after tax for the first half of FY27 stood at Rs 44,159 crore, marking a 12.31 per cent increase over the corresponding period of the previous financial year.

SBI's total business reached approximately Rs 115 lakh crore as of September 30, 2026, comprising deposits of Rs 62.78 lakh crore and advances of Rs 52.08 lakh crore. Deposits registered year-on-year growth of 12.27 per cent, while advances grew by 17.84 per cent.

Domestic advances increased by 16.94 per cent, while advances from foreign offices rose 22.86 per cent in rupee terms and 13.84 per cent in dollar terms. Within the retail, agriculture and SME (RAM) portfolio, advances grew by 17.34 per cent. Agriculture advances recorded growth of 22.64 per cent, SME advances rose 21.97 per cent and retail personal advances increased by 14.54 per cent. Corporate advances also registered 16.12 per cent growth.

On the deposits front, current account and savings account (CASA) deposits grew by 8.13 per cent, while retail term deposits increased by 16.74 per cent. The CASA ratio stood at 38.32 per cent at the end of September.

The bank reported an improvement in asset quality, with its gross non-performing assets (GNPA) ratio declining by 34 basis points year-on-year to 1.39 per cent. The net NPA ratio improved by six basis points to 0.36 per cent. The provision coverage ratio stood at 74.43 per cent, while the ratio, including AUCA, was 91.83 per cent.

The slippage ratio for the quarter improved to 0.41 per cent, while credit cost declined by 17 basis points year-on-year to 0.22 per cent.

SBI's domestic net interest margin stood at 3.11 per cent in Q2FY27, improving by 11 basis points over the preceding quarter. The whole-bank net interest margin was 2.94 per cent, up eight basis points quarter-on-quarter. For the first half of FY27, the whole-bank and domestic margins stood at 2.90 per cent and 3.06 per cent, respectively.

The bank's return on assets and return on equity for the first half stood at 1.14 per cent and 18.68 per cent, respectively. Its capital to risk-weighted assets ratio stood at 16.09 per cent at the end of the second quarter, a press release said.

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