SBI profit rises 14.28% to 23,038 crore rupees in second quarter
Key Facts
State Bank of India (SBI) reported net profit of 23,038 crore rupees in the second quarter of fiscal 2026-2027, up 14.28% from the corresponding period, according to an investor presentation issued on 3 November. Net interest income was 49,143 crore rupees, up 14.69% year on year, while operating profit rose 7.28% to 34,226 crore rupees. Profit included a one-off gain of 7,288 crore rupees from the sale of a stake in SBI Funds Management. In the corresponding period a year earlier, the bank recorded a gain of 4,593 crore rupees from the sale of a stake in Yes Bank. These exceptional gains provide important context for assessing profit growth, alongside interest income and core operating performance.
Reported profit was 23,038 crore rupees, compared with 20,160 crore in the second quarter of the previous fiscal year, while net interest income reached 49,143 crore rupees, up from 42,847 crore. Operating profit was 34,226 crore rupees, compared with 31,904 crore a year earlier. Quarter on quarter, net interest income rose from 46,992 crore rupees and operating profit from 33,529 crore, according to the bank's presentation. However, non-interest income fell 4.94% year on year to 19,066 crore rupees, from 20,056 crore. The differing trends across income items show that profit growth came with higher interest income and the stake-sale gain, while non-interest income declined year on year.
Domestic net interest margin improved by 11 basis points during the quarter to 3.11%, while the global margin rose by 8 basis points to 2.94%, according to Business Standard. The bank's chairman said a decline in the cost of deposits, alongside loan yields, helped SBI maintain and improve its net interest margin. He added: "We hope to maintain net interest margin above 3%." In the broader context of India's banking market, a Reuters report said credit demand from businesses and households remained strong, including loans to small and medium-sized companies, housing finance and auto loans. The report said Indian banks raised nearly $133 billion in foreign-currency deposits from non-resident Indians through a special Reserve Bank of India programme, and that the cost of attracting these deposits put pressure on margins.
SBI's gross loans rose about 18% year on year, while deposits increased 12.3%, Reuters reported. The comparison shows loan growth outpaced deposit growth during the period covered by the 3 November report. The report said analysts viewed the pressure from the cost of foreign deposits as potentially limited for SBI, because its mobilisation of these deposits was low relative to its total deposit base. Provisions stood at 4,217 crore rupees in the second quarter, compared with 5,400 crore rupees a year earlier and 5,047 crore in the previous quarter, NDTV Profit reported. These figures come alongside an improvement in asset-quality indicators highlighted by the bank in its comments on the results.
SBI's chairman said the gross non-performing loan ratio, at 1.39%, was its lowest in more than two decades. He attributed this to discipline in credit origination, collections and risk management, according to Business Standard. Separately, a Reuters report said the bank sold a 0.65% stake in the National Stock Exchange of India as part of its public offering. It added that proceeds from the sale were added to capital reserves and did not pass through the profit and loss account. This distinguishes the gain from the sale of a stake in SBI Funds Management, which the results presentation included in quarterly profit, from the proceeds of the National Stock Exchange of India stake sale, which went to capital reserves.
Market data displayed on the Reuters report page showed SBI shares down 1.70% on 3 November 2026. The report did not identify a direct reason for the move in the available quotation. The bank maintained its guidance for credit growth of 14–15% and deposit growth of 10–11% for fiscal 2026-2027, according to its chairman. He also said a 25-basis-point increase in the external benchmark-linked lending rate would continue to support the bank, and that any further increases in the repo rate could add 4–5 basis points to net interest margin, as the loan portfolio linked to the benchmark reprices relatively quickly. The bank's chairman said SBI raised $10.9 billion in FCNR (B) deposits through the preferential swap window opened in June, and used part of it to shed high-cost deposits.
SBI scheduled its analysts' and institutional investors' meeting to discuss second-quarter results for 3 November 2026 at 5:15 p.m., according to the bank's investor relations page. The meeting was held on the day the results were announced, giving analysts and investors an opportunity to follow management's discussion of performance and guidance. The points announced by the bank included growth in net interest income and operating profit, as well as quarterly improvements in domestic and global net interest margins. Management also presented its credit and deposit growth guidance for the current fiscal year. These targets remain the bank's stated framework for tracking its business through the rest of the fiscal year.