SBI Profits Surge 14% to Rs 23,037 Crore in Q2FY27
State Bank of India reports a 14.28% rise in net profit for Q2FY27, with NII hitting Rs 49,143 crore and improved asset quality.
India's largest public sector lender, State Bank of India (SBI), has posted a strong financial performance for the second quarter of the financial year 2026-27. According to an exchange filing on Tuesday, the bank witnessed a 14.28 per cent year-on-year (YoY) jump in its net profit, which climbed to Rs 23,037 crore.
Core Income and Operational Growth
The bank's earning power saw a significant boost, with its Net Interest Income (NII) rising by 14.69 per cent YoY to reach Rs 49,143 crore. This growth in core income contributed to an overall operating profit of Rs 34,226 crore, marking a 7.28 per cent increase compared to the previous year.
Efficiency metrics also showed positive movement. The bank reported a Whole Bank Net Interest Margin (NIM) of 2.94% and a Domestic NIM of 3.11% for Q2FY27. These figures represent an improvement of 8 basis points and 11 basis points, respectively, over the first quarter of the same financial year.
Key Financial Ratios
- Return on Assets (ROA): 1.14 per cent (for H1 FY27)
- Return on Equity (ROE): 18.68 per cent (for H1 FY27)
- Capital to Risk Weighted Assets Ratio (CRAR): 16.09 per cent
Aggressive Loan Expansion
SBI has seen a robust increase in its lending portfolio. Total advances grew by 17.84 per cent YoY, with domestic advances specifically rising by 16.94 per cent. The bank's international footprint also expanded, with advances from foreign offices growing by 22.86 per cent in rupee terms and 13.84 per cent in dollar terms.
The growth was particularly strong in the RAM (Retail, Agriculture, and MSME) segment, which grew by 17.34 per cent YoY. This was fueled by:
- Agricultural loans: 22.64 per cent growth
- SME advances: 21.97 per cent growth
- Retail personal loans: 14.54 per cent growth
Deposit Trends and Asset Quality
On the liabilities side, total deposits increased by 12.27 per cent YoY. While retail term deposits saw a healthy growth of 16.74 per cent, Current Account and Savings Account (CASA) deposits grew by 8.13 per cent. As of September 30, 2026, the CASA ratio stood at 38.32 per cent.
The bank also reported a marked improvement in its asset quality. The gross non-performing asset (NPA) ratio dropped by 34 basis points YoY to 1.39 per cent, while the net NPA ratio declined by 6 basis points to 0.36 per cent.
Risk Management and Provisions
SBI's Provision Coverage Ratio (PCR) was recorded at 74.43 per cent, which rises to 91.83 per cent when accounts under collection are included. Additionally, the slippage ratio improved by 4 basis points YoY to 0.41 per cent, and the credit cost saw a decline of 17 basis points YoY, settling at 0.22 per cent.