State Bank of India reported a 14.28% YoY net profit growth to Rs 23,037 crore for Q2FY27, alongside improved asset quality and strong advances growth across retail, agriculture, and corporate sectors during the second quarter.

SBI Reports Strong Q2FY27 Financial Performance

State Bank of India (SBI), the country's largest public sector lender, reported a 14.28 per cent year-on-year (YoY) increase in net profit for the second quarter of the financial year 2026-27 (Q2FY27), according to an exchange filing on Tuesday. The lender’s Net Interest Income (NII) for Q2FY27 increased by 14.69 per cent on YoY to Rs 49,143 crore in the latest quarter while net profit for the period stood at Rs 23,037 crore. Furthermore, the bank's operating profit grew 7.28 per cent year-on-year (YoY) to Rs 34,226 crore in Q2FY27. The bank's return on assets (ROA) and return on equity (ROE) stood at 1.14 per cent and 18.68 per cent, respectively, in the first half of FY27. Meanwhile, “Whole Bank NIM and Domestic NIM stood at 2.94% and 3.11%, respectively, in Q2FY27, improving by 8 bps and 11 bps, respectively, over Q1FY27,” the lender noted in the filing.

Advances and Deposit Growth

Apart from this, SBI's total advances grew 17.84 per cent year-on-year (YoY), with domestic advances rising 16.94 per cent. Advances from foreign offices increased 22.86 per cent in rupee terms and 13.84 per cent in dollar terms. Retail, agriculture and MSME (RAM) advances grew 17.34 per cent YoY, driven by 22.64 per cent growth in agricultural loans, 21.97 per cent in SME advances and 14.54 per cent in retail personal loans. Corporate advances rose 16.12 per cent YoY. Meanwhile, total deposits increased 12.27 per cent YoY, with current account and savings account (CASA) deposits growing 8.13 per cent. The CASA ratio stood at 38.32 per cent as of September 30, 2026, while retail term deposits grew 16.74 per cent YoY.

Asset Quality and Capital Adequacy

On asset quality, SBI's gross non-performing asset (NPA) ratio improved by 34 basis points (bps) year-on-year (YoY) to 1.39 per cent, while the net NPA ratio declined by 6 bps to 0.36 per cent. The bank's provision coverage ratio (PCR) stood at 74.43 per cent, rising to 91.83 per cent including accounts under collection. Meanwhile, the slippage ratio improved by 4 bps YoY to 0.41 per cent in Q2FY27, while credit cost declined by 17 bps YoY to 0.22 per cent. “Capital to Risk Weighted Assets Ratio (CRAR) as at the end of Q2FY27 stands at 16.09%,” the filing added. (ANI)

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