MUMBAI– State Bank of India (SBI), the country’s largest public sector bank, reported a 14.3% increase in net profit for the second quarter of fiscal 2027, supported by higher interest income, lower provisions and a one-time gain.
The bank posted a net profit of Rs 23,038 crore for the quarter ended September 2026, compared with Rs 20,160 crore during the same period a year earlier, according to a regulatory filing released Tuesday.
Net interest income, which represents the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased 15% year over year to Rs 49,143 crore from Rs 42,847 crore.
The growth in net interest income helped strengthen the bank’s earnings despite a modest decline in operating profit.
SBI reported an operating profit of Rs 26,937 crore for the September quarter, down 1.4% from Rs 27,311 crore in the corresponding quarter of the previous fiscal year.
The bank also recorded a one-time gain of Rs 7,288 crore during the quarter, providing an additional boost to its financial results.
Provisions, which banks set aside to cover potential loan losses and other liabilities, declined to Rs 4,217 crore from Rs 5,400 crore a year earlier.
Provisions were also lower on a sequential basis, falling from Rs 5,047 crore in the June quarter.
The reduction in provisions contributed to the bank’s higher net profit and came alongside further improvements in asset quality.
SBI’s gross non-performing asset (GNPA) ratio declined to 1.39% at the end of September from 1.47% in the preceding quarter, indicating a reduction in the proportion of loans classified as non-performing.
The net non-performing asset ratio also improved, falling to 0.36% from 0.38% in the June quarter.
The bank reported a slippage ratio of 0.50%, a measure of the proportion of performing loans that became non-performing during the reporting period.
Meanwhile, SBI’s domestic net interest margin stood at 3.11% for the September quarter. The metric measures the difference between interest income and interest expenses relative to interest-earning assets and is a key indicator of a bank’s lending profitability.
The latest results reflected stronger core interest income and improved asset quality, although operating profit declined slightly compared with the previous year.
Despite the increase in quarterly earnings, SBI shares traded lower following the announcement.
The bank’s stock was down 0.73% at Rs 979.75 during Tuesday’s trading session, even as the broader Indian equity market posted strong gains.
At the time, the benchmark Sensex was trading approximately 1.25% higher at 76,641, highlighting the contrast between SBI’s share performance and the overall market rally. (Source: IANS)
