State Bank of India (SBI), the nation’s largest commercial lender, reported a robust 14.3 per cent year-on-year expansion in standalone net profit to ₹23,038 crore for the second quarter of fiscal 2026-27 (Q2FY27), up from ₹20,160 crore recorded during the corresponding period of the previous financial year. The primary catalyst driving bottom-line growth was a healthy 14.7 per cent year-on-year surge in net interest income (NII), alongside a notable contraction in loan loss provisions and contingencies throughout the quarter. Lower provisioning requirements provided vital operational support to earnings, effectively neutralizing a steep dip in non-interest income. SBI’s NII expanded to ₹49,143 crore in Q2FY27 compared to ₹42,847 crore a year ago, reflecting a 4.6 per cent sequential rise from ₹46,992 crore in Q1FY27. Conversely, other income dropped 23.8 per cent year-on-year to ₹11,777 crore from ₹15,463 crore, sliding 26 per cent sequentially from ₹15,923 crore. Total provisions and contingencies declined by 21.9 per cent year-on-year to ₹4,217 crore from ₹5,400 crore, showing a sequential reduction of 16.4 per cent from ₹5,047 crore. The state-run bank demonstrated significant asset quality improvements, as the gross non-performing asset (GNPA) ratio narrowed to 1.39 per cent as of September 30, 2026, compared with 1.73 per cent a year earlier and 1.47 per cent in the preceding quarter. Similarly, the net NPA ratio improved to 0.36 per cent from 0.42 per cent in September 2025 and 0.38 per cent in June 2026. In absolute figures, gross NPAs dropped 4.9 per cent year-on-year to ₹72,529 crore, while net NPAs stood at ₹18,546 crore, compared to ₹18,460 crore a year ago. The bank’s provision coverage ratio remained strong at 74.43 per cent. Credit demand remained elevated, pushing total advances up 18.2 per cent year-on-year to ₹51.54 trillion compared to ₹43.62 trillion, while total deposits expanded 12.3 per cent to ₹62.78 trillion. SBI’s return on assets rose to 1.19 per cent from 1.17 per cent a year earlier, consolidating its overall balance sheet strength.
