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