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 \u20b923,037.95 crore for the second quarter of FY27, compared with \u20b920,159.67 crore in the corresponding quarter last year.<\/p>\n\n\n\n
The bank’s net interest income (NII) increased 14.69% to \u20b949,142.85 crore in Q2 FY27, against \u20b942,847 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.<\/p>\n\n\n\n
The financial results are for the quarter and half year ended September 30, 2026.<\/p>\n\n\n\n
Standalone Performance \u2013 Q2 FY27<\/strong><\/p>\n\n\n\n Consolidated Performance \u2013 Q2 FY27<\/strong><\/p>\n\n\n\n A significant factor behind SBI’s quarterly earnings was a one-time gain of \u20b97,288.47 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.<\/p>\n\n\n\n The transaction reduced SBI’s holding in the asset management subsidiary to approximately 55.56% as of September 30, 2026.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n SBI’s NII increased 14.69% year-on-year to \u20b949,142.85 crore, reflecting growth in its core interest-earning business.<\/p>\n\n\n\n Interest earned rose 10.46% to \u20b91,32,018.55 crore, while interest expended increased 8.09% to \u20b982,875.70 crore.<\/p>\n\n\n\n The bank’s domestic net interest margin (NIM) improved to 3.11% in Q2 FY27, increasing 11 basis points sequentially.<\/p>\n\n\n\n SBI’s operating profit before provisions stood at \u20b926,937.24 crore, compared with \u20b927,310.92 crore in the corresponding quarter last year.<\/p>\n\n\n\n The bank reported an improvement in its asset quality during the September quarter.<\/p>\n\n\n\n The improvement in non-performing asset ratios indicates a reduction in the proportion of stressed loans within the bank’s loan portfolio.<\/p>\n\n\n\n SBI continued to report growth in its banking business during the quarter.<\/p>\n\n\n\n Retail advances also recorded year-on-year growth, while the bank continued to expand its lending activities across key segments.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n The bank’s NII growth, domestic margin improvement and lower NPA ratios remain important indicators to track while assessing its quarterly performance.<\/p>\n\n\n\n\n
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One-Time Gain from SBI Funds Management Stake Sale<\/h2>\n\n\n\n
Net Interest Income and Banking Operations<\/h2>\n\n\n\n
Asset Quality Shows Improvement<\/h2>\n\n\n\n
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Advances and Deposits<\/h2>\n\n\n\n
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Conclusion<\/h2>\n\n\n\n