The State Bank of India (SBI), the country's largest lender, reported a 14.3% year-on-year increase in its net profit for the reporting period. For the second quarter of the 2026-27 fiscal year (Q2FY27), net profit reached 23,038 crore rupees, compared to 20,160 crore rupees in the same quarter last year.
This rise in net profit is attributed to a steady increase in Net Interest Income (NII), which grew by 14.7% year-on-year, as well as a reduction in provisioning and unforeseen expenses during the quarter. The decrease in loss coverage provisions supported the financial result despite a sharp drop in other income.
Financial Indicators
Net Interest Income increased to 49,143 crore rupees in Q2FY27, up from 42,847 crore rupees the previous year. Furthermore, quarterly NII grew by 4.6% compared to 46,992 crore rupees in the first quarter of the 2027 fiscal year.
However, other income decreased by 23.8% year-on-year, amounting to 11,777 crore rupees against 15,463 crore rupees the previous year. Compared to the previous quarter, other income fell by 26%, down from 15,923 crore rupees.
Provisioning and unforeseen expenses decreased by 21.9% year-on-year, reaching 4,217 crore rupees compared to 5,400 crore rupees the previous year. Quarterly, these expenses dropped by 16.4% relative to 5,047 crore rupees.
Asset Quality
Regarding asset quality, the bank's Gross Non-Performing Assets (GNPA) ratio improved to 1.39% as of September 30, 2026, which is lower than the 1.73% recorded the previous year and 1.47% in the preceding quarter. The Net NPA ratio also improved to 0.36% compared to 0.42% in September 2025 and 0.38% in June 2026.
In absolute terms, total non-performing assets amounted to 72,529 crore rupees, which is 4.9% less year-on-year and 2.3% sequentially. Net non-performing assets reached 18,546 crore rupees, slightly higher than 18,460 crore rupees the previous year, and higher than 19,158 crore rupees in the preceding quarter.
The bank's provisioning coverage ratio stood at 74.43% as of September 30. SBI's total loan book grew by 18.2% year-on-year to 51.54 trillion rupees as of September 30, 2026, compared to 43.62 trillion rupees the previous year. Deposits increased by 12.3% to 62.78 trillion rupees from 55.92 trillion rupees.
The bank's return on assets was 1.19%, slightly higher than 1.17% the previous year and 1.11% in the preceding quarter.
