State Bank of India (SBI), the country’s largest public sector lender, reported a 14.28% year-on-year increase in standalone net profit to ₹23,037.95 crore for the second quarter of FY27, compared with ₹20,159.67 crore in the corresponding quarter last year.
The bank’s net interest income (NII) increased 14.69% to ₹49,142.85 crore in Q2 FY27, against ₹42,847 crore in Q2 FY26. The growth in quarterly profit was supported by higher interest income, lower provisions and a one-time gain from the partial sale of its stake in SBI Funds Management Ltd.
The financial results are for the quarter and half year ended September 30, 2026.
SBI Q2 Results : Key Financial Highlights
Standalone Performance – Q2 FY27
- Net profit: ₹23,037.95 crore, up 14.28% YoY.
- Net interest income: ₹49,142.85 crore, up 14.69% YoY.
- Total income: ₹1,43,796 crore, up 6.53% YoY.
- Interest earned: ₹1,32,018.55 crore, up 10.46% YoY.
- Profit before tax: ₹30,008.85 crore, compared with ₹26,504.02 crore a year ago.
- Operating profit before provisions: ₹26,937.24 crore, down 1.37% YoY.
Consolidated Performance – Q2 FY27
- Total income: ₹1,87,756.19 crore, up approximately 6.7% YoY.
- Net profit: ₹25,741.47 crore, compared with ₹21,504.49 crore a year ago.
- Net profit after minority interest: ₹25,361.16 crore, up approximately 20% YoY.
- Operating profit: ₹31,591.84 crore, compared with ₹32,116.97 crore in Q2 FY26.
One-Time Gain from SBI Funds Management Stake Sale
A significant factor behind SBI’s quarterly earnings was a one-time gain of ₹7,288.47 crore following the sale of approximately 6.30% of its stake in SBI Funds Management Ltd. through an offer for sale (OFS) and pre-IPO placement.
The transaction reduced SBI’s holding in the asset management subsidiary to approximately 55.56% as of September 30, 2026.
This exceptional gain contributed to the reported profit growth. Therefore, the increase in net profit should be viewed in the context of both the bank’s operating performance and the one-time transaction.
Net Interest Income and Banking Operations
SBI’s NII increased 14.69% year-on-year to ₹49,142.85 crore, reflecting growth in its core interest-earning business.
Interest earned rose 10.46% to ₹1,32,018.55 crore, while interest expended increased 8.09% to ₹82,875.70 crore.
The bank’s domestic net interest margin (NIM) improved to 3.11% in Q2 FY27, increasing 11 basis points sequentially.
SBI’s operating profit before provisions stood at ₹26,937.24 crore, compared with ₹27,310.92 crore in the corresponding quarter last year.
Asset Quality Shows Improvement
The bank reported an improvement in its asset quality during the September quarter.
- Gross NPA ratio: 1.39%, compared with 1.73% in Q2 FY26.
- Net NPA ratio: 0.36%, compared with 0.42% a year ago.
- Provisions and contingencies: ₹4,216.86 crore, down 21.91% YoY.
- Credit cost: 0.22%.
The improvement in non-performing asset ratios indicates a reduction in the proportion of stressed loans within the bank’s loan portfolio.
Advances and Deposits
SBI continued to report growth in its banking business during the quarter.
- Gross advances increased 17.84% year-on-year.
- Deposits grew 12.27% year-on-year.
- The bank’s business levels reached approximately ₹115 trillion.
- The capital adequacy ratio stood at 16.09%.
Retail advances also recorded year-on-year growth, while the bank continued to expand its lending activities across key segments.
Conclusion
State Bank of India’s Q2 FY27 results reflected growth in net profit and net interest income, alongside an improvement in asset quality. However, the reported profit was also supported by a substantial one-time gain from the SBI Funds Management stake sale.
The bank’s NII growth, domestic margin improvement and lower NPA ratios remain important indicators to track while assessing its quarterly performance.
Source: State Bank of India – Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026; company press release and investor disclosures.
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