SBI Q2 FY27 net profit rises 14% to ₹23,038 crore on strong NII growth
Synopsis
India's largest bank delivered a 14.3% profit jump to ₹23,038 crore in Q2 FY27, but buried in the headline is a ₹7,288 crore one-time gain that inflated the bottom line. Strip that out and the picture is more nuanced — operating profit actually slipped 1.4%, even as NII grew 15% and bad loans hit multi-year lows below 1.4%.
Key Takeaways
SBI reported a 14.3% year-on-year rise in net profit to ₹23,038 crore in Q2 FY27 .
Net Interest Income grew 15% YoY to ₹49,143 crore , up from ₹42,847 crore a year ago.
Operating profit dipped 1.4% to ₹26,937 crore despite strong NII growth.
A one-time gain of ₹7,288 crore boosted the reported bottom line during the quarter.
Provisions fell to ₹4,217 crore from ₹5,400 crore a year ago and ₹5,047 crore in Q1 FY27.
GNPA ratio improved to 1.39% ; net NPA ratio eased to 0.36% quarter-on-quarter.
State Bank of India (SBI) on Tuesday, 3 November 2026, reported a 14.3% year-on-year jump in net profit to ₹23,038 crore for the July–September quarter of FY27, driven by robust growth in net interest income and a significant decline in provisions. The country's largest public sector lender had posted a net profit of ₹20,160 crore in the same quarter a year ago, according to its stock exchange filing.
Income Growth and Operating Performance
Net Interest Income (NII) — the difference between interest earned and interest paid — climbed 15% year-on-year to ₹49,143 crore in Q2 FY27, up from ₹42,847 crore in the corresponding period of FY26. The strong NII performance reflects sustained credit demand and improved asset deployment across the bank's loan book.
However, SBI's operating profit dipped marginally by 1.4% to ₹26,937 crore, compared with ₹27,311 crore in the year-ago quarter, signalling some pressure on non-interest income streams even as core lending income held firm. The bank also reported a one-time gain of ₹7,288 crore during the quarter, which provided an additional boost to the bottom line, according to its exchange filing.
Provisions Fall, Asset Quality Improves
Provisions declined sharply to ₹4,217 crore in Q2 FY27, down from ₹5,400 crore in the same quarter last year and lower than the ₹5,047 crore recorded in the preceding June quarter. The sequential and annual reduction in provisioning requirements underscores improving credit quality across SBI's portfolio.
Asset quality metrics reinforced this picture: the Gross Non-Performing Asset (GNPA) ratio improved to 1.39% from 1.47% in the preceding quarter, while the net NPA ratio eased to 0.36% from 0.38% quarter-on-quarter. The bank's slippage ratio stood at 0.50%, and its domestic Net Interest Margin (NIM) was recorded at 3.11% for the quarter.
Market Reaction
Despite the headline profit beat, SBI shares traded 0.73% lower at ₹979.75 following the earnings announcement on Tuesday. The broader market moved in the opposite direction, with the Sensex up 1.25% at around 76,641 at the same time, suggesting investors may have already priced in the strong result or taken profit on the disclosure.
Context and What It Signals
This comes amid a broader phase of margin compression for Indian banks as the Reserve Bank of India (RBI) has held the repo rate steady, limiting repricing upside on loans while deposit costs have remained elevated. SBI's ability to grow NII by double digits in this environment points to volume-led growth rather than margin expansion — a pattern seen across large public sector lenders this cycle.
Notably, the one-time gain of ₹7,288 crore inflates the reported profit figure, and analysts are likely to focus on recurring earnings power when assessing the quality of the result. With GNPA below 1.5% for the second consecutive quarter, SBI's asset quality trajectory remains among the cleanest in its history, setting a high benchmark for the sector's Q2 reporting season.
Point of View
288 crore one-time gain is doing meaningful work here, and operating profit actually shrank. The more durable story is in asset quality: a GNPA ratio below 1.4% is historically low for India's largest lender, and sustained provisioning decline suggests the bad-loan clean-up cycle is mature. The NIM at 3.11% is worth watching; if the RBI pivots to rate cuts, SBI's liability franchise — the largest in the country — could face NIM headwinds that volume growth alone may not offset. Markets trading the stock lower even as the Sensex rallied is a telling signal that sophisticated investors are looking past the one-time item.
NationPress
3 Nov 2026
Frequently Asked Questions
What was SBI's net profit in Q2 FY27?
SBI reported a net profit of ₹23,038 crore in Q2 FY27 (July–September 2026), a 14.3% increase year-on-year from ₹20,160 crore in Q2 FY26. The result was aided by a 15% rise in net interest income and a one-time gain of ₹7,288 crore.
Why did SBI's operating profit fall despite strong income growth?
SBI's operating profit declined 1.4% to ₹26,937 crore in Q2 FY27, down from ₹27,311 crore a year ago, even as net interest income grew 15%. The dip suggests pressure on non-interest income streams, which offset the strong core lending performance.
How did SBI's asset quality change in Q2 FY27?
Asset quality improved: the Gross NPA ratio fell to 1.39% from 1.47% in the preceding quarter, and the net NPA ratio eased to 0.36% from 0.38% quarter-on-quarter. The slippage ratio stood at 0.50%, indicating fewer new loans turning bad.
What was the one-time gain SBI reported this quarter?
SBI recorded a one-time gain of ₹7,288 crore during Q2 FY27, according to its stock exchange filing. This item provided a significant additional boost to net profit beyond recurring earnings.
How did SBI shares react to the Q2 results?
SBI shares traded 0.73% lower at ₹979.75 after the earnings announcement, even as the Sensex rose 1.25% to around 76,641 at the same time, suggesting investors may have already factored in strong results or were focusing on the one-time nature of the profit boost.
