₹7,288 Crore Stake-Sale Gain Stands Out in SBI Results
Key Facts
State Bank of India’s second-quarter fiscal 2027 results showed a split between improving lending margins and declines in some non-interest income sources. The bank recorded a ₹7,288 crore gain from selling a stake in SBI Funds Management. But non-interest income fell about 5% year over year to ₹19,066 crore. Coverage attributed the decline mainly to lower treasury income. The divergence puts the sale gain alongside pressure on recurring revenue when assessing the components of the bank’s results.
Domestic net interest margin rose 11 basis points quarter over quarter to 3.11%, while the global margin climbed 8 basis points to 2.94%. The bank’s chairman said lower deposit costs, alongside loan yields, helped maintain and improve the margin. He added that the bank raised $10.9 billion through FCNR(B) deposits under the preferential swap window. The bank used these deposits to retire some high-cost deposits, he said. The margin improvement alongside lower funding costs points to deposit management’s role in supporting interest income.
On asset quality, provisions for bad loans fell 33% year over year to ₹2,759 crore. New slippages, however, rose to ₹5,227 crore, compared with ₹4,754 crore a year earlier. The gross non-performing asset ratio declined 12 basis points quarter over quarter to 1.39%. The net non-performing asset ratio also fell, by 2 basis points, to 0.36%. These indicators combine lower provisions and improving non-performing loan ratios with a higher value of new slippages than in the year-earlier period.
Ahead of the results, Axis Securities estimated that net interest income would rise 11.7% year over year to ₹48,027 crore in the second quarter of fiscal 2027. It also forecast net profit to increase 15.6% to ₹23,310 crore, citing loan and deposit growth. These are prior estimates, not the bank’s reported results. The company’s forecasts provide context for the performance components the market watched before the announcement, particularly interest income and business growth. The bank results covered in this report include margins, non-interest income, provisions and asset quality.