News ArticleState Bank of India Posts ₹23,038 Crore Net Profit for Q2 FY27 with 17.84% YoY Growth in Gross Advances
Operating profit reached ₹34,226 crore in Q2 FY27 as domestic advances and deposits grew significantly alongside the bank's lowest NPA ratios in over two decades
State Bank of India reported a net profit of ₹23,038 crore for Q2 FY27, reflecting a 14.28% year-on-year increase. The bank's gross advances grew by 17.84% YoY to ₹52 trillion, while deposits rose 12.27% to ₹63 trillion, supported by strong asset quality and an 11 bps rise in domestic net interest margin to 3.11%.
State Bank of India
Investor Presentation
State Bank of India achieved a net profit of ₹23,038 crore for the quarter ended September 30, 2026, marking a 14.28% increase year-on-year. The bank's gross advances surged by 17.84% to ₹52 trillion, and total deposits grew by 12.27% to ₹63 trillion, supported by improved asset quality and rising domestic net interest margin.
The bank's operating profit for Q2 FY27 stood at ₹34,226 crore, a 7.28% increase over the same period last year. Domestic net interest margin increased by 11 basis points quarter-on-quarter, reaching 3.11%.
Asset quality improved with gross non-performing assets (NPAs) falling to 1.39% and net NPAs to 0.36%, reflecting the lowest levels in more than two decades. Credit cost reduced to 0.22%.
Key business segments showed robust growth: SME advances increased by 21.97%, agricultural loans by 22.64%, and retail personal advances by 14.54%. Total domestic advances reached ₹43.77 trillion, a 16.94% increase year-on-year.
Deposit growth was also strong with CASA deposits up 8.13% year-on-year, while term deposits grew by 14.26%. The bank maintains a capital adequacy ratio of 16.09%, indicating a solid capital base to support growth.
The bank continues its digital leadership, with 98.9% of transactions through alternate channels and millions of registered users on its YONO digital platform, reinforcing its customer engagement and operational efficiency.
Highlights
- Net profit of ₹23,038 crore for Q2 FY27, up 14.28% YoY
- Gross advances grew 17.84% YoY to ₹52 trillion
- Total deposits increased 12.27% YoY to ₹63 trillion
- Domestic net interest margin rose 11 bps QoQ to 3.11%
- Gross NPA ratio at 1.39%, net NPA at 0.36%, lowest in over 20 years
- Credit cost reduced to 0.22% for Q2 FY27 period
Key Data Snapshot
What happened
- State Bank of India reported its financial results for the quarter and half-year ended September 30, 2026.
- The bank posted a net profit of ₹23,038 crore for Q2 FY27, reflecting a 14.28% increase year-on-year.
- Gross advances rose 17.84% YoY to ₹52 trillion, with significant growth in SME, agriculture, and retail personal segments.
- Total deposits increased by 12.27% YoY to ₹63 trillion, supported by CASA and term deposits growth.
- Domestic net interest margin rose by 11 basis points to 3.11%, boosting profitability.
- Asset quality improved with gross NPA and net NPA at lowest ratios seen for over two decades.
Key details
- Operating profit for Q2 FY27 was ₹34,226 crore, a 7.28% year-on-year increase.
- Credit cost reduced to 0.22%, a drop of 17 basis points YoY.
- Bank’s gross NPA ratio declined to 1.39% and net NPA to 0.36%.
- Provision coverage ratio (PCR) stands at 74.43%.
- Capital adequacy ratio improved by 147 basis points YoY to 16.09%.
- Digital transactions constitute 98.9% of total transactions, highlighting digital adoption.
Financial performance
- Domestic net interest margin (NIM) advanced to 3.11% in Q2 FY27, up 3 basis points YoY and 11 basis points quarter-on-quarter.
- Gross advances witnessed 17.84% growth YoY, led by SME (21.97%), agriculture (22.64%), and retail personal banking (14.54%).
- Deposits grew 12.27% YoY with CASA up 8.13% and term deposits growing 14.26%.
- Net profit increased 14.28% YoY to ₹23,038 crore.
- Operating profit rose 7.28% YoY to ₹34,226 crore.
Operational performance
- The bank’s asset quality improved with gross NPA ratio at 1.39% and net NPA ratio at 0.36%, the lowest in over 20 years.
- Credit cost reduced significantly to 0.22%.
- Retail personal loans constitute approximately 41.70% of domestic advances with steady growth.
- Digital platform YONO has around 11.1 crore registered customers reinforcing the bank’s digital leadership.
- The bank benefited from a domestic credit deposit ratio (CD ratio) of approximately 140.47%.
Strategic context
- The bank sustains strong capital adequacy at 16.09%, supporting future growth and lending capacity.
- Focus on expanding SME, agriculture, and retail segments evidences the bank’s strategy for diversified loan portfolio development.
- Heavy adoption of digital channels with 98.9% transactions processed through alternate means, confirming SBI’s leadership in digital banking.
Next milestones
- Monitoring asset quality and credit cost to maintain robust financial health in future quarters.
- Further leveraging of digital platforms to enhance operational efficiency and customer engagement.
- Continued growth focus on retail, SME, and agricultural loan segments to sustain business expansion.
Highlights
- Net profit of ₹23,038 crore for Q2 FY27, up 14.28% YoY
- Gross advances grew 17.84% YoY to ₹52 trillion
- Total deposits increased 12.27% YoY to ₹63 trillion
- Domestic net interest margin rose 11 bps QoQ to 3.11%
- Gross NPA ratio at 1.39%, net NPA at 0.36%, lowest in over 20 years
- Credit cost reduced to 0.22% for Q2 FY27 period
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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