SBI Posts 14% Rise in Q2 Profit to ₹23,038 Crore as Provisions Fall

Synopsis

State Bank of India's standalone net profit for the September quarter stood at ₹23,038 crore, which is 14.3% higher than the previous quarter's figure of ₹20,160 crore. Net interest income grew 14.7% to ₹49,143 crore and provisions fell about 22%. Gross NPAs were reduced to 1.39%. Other income dropped by almost 25%, leaving operating profit up a more modest 7.28%.

SBI's standalone net profit also increased, growing by 14.3% to a sum of ₹23,038 crore in the second quarter of 2026-27 as compared to ₹20,160 crore a year ago. Net interest income, which is the interest earned minus interest paid, increased 14.7% to ₹49,143 crore from ₹42,847 crore. Media reports Blamed the rise on a "positive" net interest income and a drop in provisions and contingencies. By the numbers, the profits jumped 9.07% sequentially to a company-high of ₹21,121 crore.

Provision and asset quality is clearly being evaluated

Provisions fell by 21.9% to ₹4,217 crore as compared to a year before, and were 16.4% lower than in the previous quarter. Gross NPA ratio stood at 1.39% compared to 1.47% in June and 1.73% a year ago. The net NPA ratio eased to 0.36%. The slip ratio was 0.50%.

Margins and growth

The domestic net interest margin rose to 3.11% from 3.00% in the previous quarter. One report found that advances increased 17.84% and deposits 12.27% compared to the previous year. At the half year mark, deposits totalled approximately ₹63 trillion while advances totalled approximately ₹52 trillion.

At points where the image is less strong

Operating profit increased by 7.28% to ₹34,226 crore as compared to the net profit. Other income fell 23.8% to ₹11,777 crore from ₹15,463 crore. A fall in core operating performance was offset by lower provisions and in part exceptional gains, wrote analysts commenting on the result.

Others list lower funding costs as a driver of some of the summations for the quarter. The reports covered here suggest instead that the net interest income, and the provision reduction, gains were the positive ones.

Consolidated net profit rose 19.9% to ₹25,351.16 crore. The standalone profit for the first half was ₹44,159.17 crore, 12 per cent higher.

What to watch

Credit growth outpacing deposit growth puts attention on funding costs and margins. Investors will be keeping a close eye on whether provisions remain low and whether fee and treasury income bounce back as well as how the bank manages any increase in slippage. Also relevant is the Reserve Bank's stance on rates and how this impacts deposit pricing.