State Bank of India (SBI), the country’s largest lender, has announced a robust financial performance for the second quarter of the fiscal year 2026-27. The bank’s net profit for Q2FY27 surged by 14.28% year-on-year to ₹23,038 crores, underscoring its strong position in the banking sector. This growth in profitability was accompanied by a 7.28% increase in operating profit, which reached ₹34,226 crores.
The bank’s net interest income (NII) also witnessed a significant rise, climbing by 14.69% year-on-year. The domestic net interest margin (NIM) improved to 3.11% in Q2FY27, reflecting an increase of 11 basis points from the previous quarter. This improvement in NIM is indicative of SBI’s efficient management of interest income and expenses, contributing to its overall financial health.
SBI’s balance sheet highlights a commendable growth in advances and deposits. Whole bank advances grew by 17.84% year-on-year, with domestic advances increasing by 16.94%. Notably, the bank’s foreign offices’ advances exhibited a 22.86% growth in rupee terms. On the deposits front, the bank recorded a 12.27% year-on-year increase, with a notable 16.74% rise in retail term deposits. However, the CASA ratio slightly declined to 38.32%, down by 131 basis points from the previous year.
In terms of asset quality, SBI reported an improvement in its gross non-performing asset (NPA) ratio, which decreased by 34 basis points year-on-year to 1.39%. The net NPA ratio also improved, dropping by 6 basis points to 0.36%. The bank’s provision coverage ratio, including accumulated unrecognised credit adjustments (AUCA), remained robust at 91.83%. Additionally, the credit cost for the quarter reduced by 17 basis points to 0.22%, highlighting effective risk management strategies.
Analysts view SBI’s strong financial performance as a positive indicator of its resilience and strategic growth initiatives. The bank’s capital adequacy ratio (CRAR) stood at 16.09%, reflecting a solid capital position. As SBI continues to leverage its extensive network and digital capabilities, market observers anticipate sustained growth momentum in the coming quarters.
