SBI Q2 Results: Loan Book Crosses ₹52 Lakh Crore as Net Profit Rises 14% to ₹23,038 Crore

State Bank of India records strong credit growth, higher interest income and improved asset quality in the September quarter of FY2026-27.

Business Desk | November 4, 2026

Strong demand for loans, improved interest earnings and lower provisions for bad loans contributed to a profitable second quarter for State Bank of India (SBI), with the country’s largest public sector lender reporting a net profit of ₹23,038 crore for the July–September period of the 2026-27 financial year.

The earnings represent a 14.28% increase from ₹20,160 crore recorded during the corresponding quarter of the previous financial year.

The results, announced on November 3, also highlighted an expansion in SBI’s lending operations, with gross advances crossing ₹52 lakh crore and total deposits approaching ₹63 lakh crore as of September 30, 2026.

SBI Records Higher Interest Income and Operating Profit

According to the bank’s official financial results, net interest income (NII), representing the difference between interest earned and interest paid, increased by 14.69% year-on-year to ₹49,143 crore.

Operating profit rose 7.28% to ₹34,226 crore from ₹31,904 crore in the same quarter last year.

SBI also reported a decline in loan-loss provisions, which fell to ₹2,759 crore from ₹4,132 crore a year earlier, representing a reduction of 33.23%.

The decline in provisions, alongside higher net interest income, supported the bank’s quarterly profitability.

For the first six months of FY2026-27, SBI recorded a profit after tax of ₹44,159 crore, compared with ₹39,320 crore in the corresponding period last year, reflecting growth of 12.31%.

SBI’s Total Business Approaches ₹115 Lakh Crore

SBI’s combined deposits and advances reached approximately ₹115 lakh crore at the end of September 2026.

The bank’s gross advances stood at ₹52.08 lakh crore, an increase of 17.84% compared with September 2025.

Domestic advances grew by 16.94%, while lending through the bank’s foreign offices expanded by 22.86% in rupee terms.

Foreign office advances also registered growth of 13.84% when measured in US dollars.

The figures indicate broad-based credit expansion across the bank’s domestic and international operations.

Agriculture and SME Loans Register Strong Growth

Among SBI’s lending categories, agriculture and small and medium enterprise (SME) loans recorded particularly strong growth.

Agricultural advances increased by 22.64% year-on-year, while SME lending expanded by 21.97%.

Retail personal advances, which include loans to individual borrowers, grew by 14.54%.

Corporate advances also increased by 16.12%, reflecting higher lending activity among business customers.

Overall, SBI’s retail, agriculture and SME (RAM) portfolio registered growth of 17.34% compared with the previous year.

The expansion across these categories contributed to the bank’s overall advance growth during the quarter.

SBI Deposits Rise 12.27% to ₹62.78 Lakh Crore

SBI’s deposit base reached ₹62.78 lakh crore as of September 30, 2026, compared with ₹55.92 lakh crore a year earlier.

This represents year-on-year growth of 12.27%.

Current account and savings account (CASA) deposits increased by 8.13%, while retail term deposits grew by 16.74%.

However, the CASA ratio, which measures the proportion of current and savings account deposits in the bank’s total deposits, declined to 38.32% from 39.63% in September 2025.

The decline indicates that CASA deposits grew more slowly than the bank’s overall deposit base.

Asset Quality Improves as Bad Loan Ratios Decline

SBI reported a further improvement in its asset quality, with both gross and net non-performing asset (NPA) ratios declining.

The gross NPA ratio fell to 1.39% from 1.73% a year earlier, an improvement of 34 basis points.

The net NPA ratio decreased to 0.36% from 0.42%, improving by six basis points over the same period.

The bank’s provision coverage ratio stood at 74.43%. Including Advances Under Collection Account (AUCA), the ratio was 91.83%.

SBI also reported a slippage ratio of 0.41% for the quarter, compared with 0.45% a year earlier.

Credit cost, another indicator of the impact of loan-related provisions, declined to 0.22% from 0.39% in the corresponding quarter of FY2025-26.

These indicators reflect an improvement in the bank’s reported loan portfolio quality.

Net Interest Margins Strengthen During Quarter

SBI reported an improvement in its net interest margins (NIM), a key measure of profitability from lending activities.

The domestic net interest margin increased to 3.11% in the September quarter from 3.00% in the preceding quarter, an improvement of 11 basis points.

The whole-bank net interest margin rose to 2.94% from 2.86% in the June quarter.

For the first half of FY2026-27, the domestic net interest margin stood at 3.06%, while the whole-bank margin was 2.90%.

The sequential improvement indicates stronger margins during the July–September quarter.

SBI Reports Capital Adequacy Ratio of 16.09%

SBI’s capital to risk-weighted assets ratio (CRAR), which measures the bank’s capital relative to its risk-weighted exposures, stood at 16.09% at the end of September 2026.

This was higher than the 14.62% reported a year earlier.

Meanwhile, the bank’s return on assets (ROA) for the first half of FY2026-27 stood at 1.14%, while return on equity (ROE) reached 18.68%.

The latest quarterly results show continued expansion in SBI’s lending business, accompanied by higher profitability and lower reported bad loan ratios.

However, the bank’s slower CASA deposit growth relative to overall deposits remains an important indicator to monitor in subsequent quarters.

Source: State Bank of India’s official Q2 FY2026-27 financial results, released on November 3, 2026.