SBI Q2 Results: Net Profit Rises 14% to ₹23,038 Crore; NII Up 15%

State Bank of India reported a 14.3% year-on-year rise in standalone net profit to ₹23,038 crore for the September quarter (Q2 FY27), the bank said on November 3. The SBI Q2 results were lifted by a one-time gain and steady loan growth.

Net interest income (NII), the gap between interest earned and interest paid, rose 14.69% to ₹49,143 crore from ₹42,847 crore a year earlier. Profit in the year-ago quarter stood at ₹20,160 crore.

SBI Q2 results: key numbers

A large part of the quarter’s earnings came from a single transaction. SBI booked a gain of about ₹7,288 crore from selling part of its stake in SBI Funds Management, according to reports on the results.

The lender also realised about ₹2,400 crore from selling shares in the National Stock Exchange’s public offering. That gain was taken to reserves and did not pass through the profit and loss account, Business Standard reported.

Operating profit rose 7.28% to ₹34,226 crore, a figure that includes the stake-sale gain. Excluding it, operating profit was about ₹26,937 crore, 1.4% lower than a year earlier. The domestic net interest margin (NIM) widened 11 basis points from the June quarter to 3.11%.

Loan-loss provisions fell 33% year on year to ₹2,759 crore, according to Business Standard. Credit cost for the quarter eased to 0.22% from 0.39% a year earlier.

For the first half of FY27, SBI posted a net profit of ₹44,159 crore, up 12.31% from ₹39,320 crore a year earlier.

Loan growth and SBI asset quality

Whole-bank advances grew 17.84% year on year, with domestic advances up 16.94%. The loan book rose 3.2% sequentially to ₹52.08 lakh crore.

Retail, agriculture and MSME loans together grew 17.34%, while corporate advances rose 16.12%. Advances at foreign offices climbed 22.86% in rupee terms and 13.84% in dollar terms.

Deposits grew more slowly than loans. Total deposits rose 12.27% to about ₹62.8 lakh crore, CASA deposits increased 8.13% and domestic term deposits went up 14.26%. The CASA ratio stood at 38.32% at the end of September, down from 39.63% a year earlier.

SBI asset quality improved further. The gross NPA ratio fell 34 basis points year on year to 1.39%, and the net NPA ratio declined 6 basis points to 0.36%. The provision coverage ratio, including AUCA, was 91.83%.

The bank’s capital adequacy ratio stood at 16.09% as of September 30, 2026.

Why SBI net profit matters for Indian business

As the country’s largest lender, SBI is often read as a gauge of credit demand in the wider economy. Loan growth near 18% suggests that companies and households are still borrowing actively, with agriculture and SME loans growing more than 20%.

The quarter also showed how SBI has funded that growth. The bank raised $10.9 billion in FCNR(B) deposits through a concessional swap window in June; excluding these, deposit growth was about 10.5–10.6%, Chairman C S Setty said, according to Business Standard.

Other public sector lenders have also reported strong earnings this season. Bank of Baroda recently posted a record quarterly profit, as covered in our report on Bank of Baroda’s Q2 results.

For investors, the key question is how much of the SBI net profit came from day-to-day banking. Because the headline figure includes a one-off gain of about ₹7,288 crore, analysts are likely to focus on trends in core income such as NII.

Setty said the bank’s FY27 guidance of 14–15% credit growth and 10–11% deposit growth remains unchanged. Loan growth in the first half has run ahead of that range.

Also Read: Kotak Mahindra Bank Q2 Profit Rises 29% to ₹4,212 Crore; NIM Narrows | IndusInd Bank Q2 Profit at ₹1,242 Crore as Provisions Fall 54%

After the SBI Q2 results, analysts will watch whether the bank can hold its domestic margin above 3%, a level Setty said he hopes to maintain. They will also track slippages in the fast-growing agriculture and SME books in the second half.

Further details are available on the State Bank of India website. More updates on lenders and listed companies are on our business news page.