SBI Q2: Asset quality hits over 20-year high as net profit rises 14% to ₹23,038 crore

State Bank of India (SBI) on Tuesday said its asset quality improved to its best level in more than two decades in the September quarter, with the gross non-performing assets (GNPA) ratio declining to 1.39% and the net NPA ratio falling to 0.36%.

The country's largest lender reported a 14.28% year-on-year increase in standalone net profit to ₹23,038 crore for the second quarter of FY27, compared with ₹20,160 crore in the corresponding period last year.

The GNPA ratio improved by 34 basis points from 1.73% a year earlier and was lower than 1.47% in the preceding quarter. The net NPA ratio declined by six basis points from 0.42% in September 2025 and was down from 0.38% in June 2026.

SBI's investor presentation described the bank's NPA ratios as the lowest in more than two decades.

SBI Q2 FY27: Net interest income rises 14.7%

The bank's standalone net interest income (NII) increased 14.69% year-on-year to ₹49,143 crore in Q2 FY27 from ₹42,847 crore in the year-ago period. Interest income rose 10.46% to ₹1.32 lakh crore, while interest expenses increased 8.09% to ₹82,876 crore.

However, operating profit before provisions and contingencies declined 1.37% to ₹26,937 crore from ₹27,311 crore in Q2 FY26. Provisions for loan losses fell to ₹2,759 crore from ₹4,132 crore a year earlier.

The domestic net interest margin (NIM) improved to 3.11% from 3.08% in the year-ago quarter and 3% in the preceding quarter. The whole-bank NIM stood at 2.94%, compared with 2.96% a year earlier.

SBI advances grow 17.84%, deposits rise 12.27%

SBI's gross advances increased 17.84% year-on-year to ₹52.08 lakh crore as of September 30, 2026, while deposits grew 12.27% to ₹62.78 lakh crore.

Among loan segments, agricultural advances grew 22.64% year-on-year, followed by SME advances, which rose 21.97%. Retail personal advances increased 14.54%, while corporate advances grew 16.12%.

The bank's CASA deposits increased 8.13% year-on-year, with the CASA ratio standing at 38.32% at the end of September, compared with 39.63% a year earlier.

SBI's credit cost declined to 0.22% in Q2 FY27 from 0.39% in the corresponding quarter last year. Its provision coverage ratio, excluding AUCA, stood at 74.43%.

The bank's capital adequacy ratio stood at 16.09% at the end of September 2026, compared with 14.62% a year earlier.