State Bank of India’s quarterly profit rises 14.28% to ₹23,038 crore, supported by higher interest income, expanding advances and improving asset quality.
Business Desk | November 4, 2026
India’s largest public sector bank, State Bank of India (SBI), has reported a significant expansion in its lending business during the September quarter, with agriculture, small business and personal loans contributing to strong credit growth.
The bank’s financial performance also improved, with standalone net profit reaching ₹23,038 crore in the second quarter of the 2026-27 financial year, up 14.28% from ₹20,160 crore in the same period last year.
According to the financial results announced on November 3, SBI recorded higher interest earnings, reduced loan-loss provisions and an improvement in its non-performing asset ratios.
The results reflect growth across several lending categories as the bank continues to expand its operations in domestic and international markets.
SBI Net Profit Climbs to ₹23,038 Crore
SBI’s operating profit increased by 7.28% year-on-year to ₹34,226 crore during the July–September quarter.
Net interest income, which represents the difference between interest earned on loans and investments and interest paid on deposits and borrowings, rose 14.69% to ₹49,143 crore.
The bank also benefited from lower loan-loss provisions, which declined to ₹2,759 crore from ₹4,132 crore in the corresponding quarter of the previous financial year.
For the first half of FY2026-27, SBI reported a profit after tax of ₹44,159 crore, registering growth of 12.31% compared with the same period last year.
SBI Loan Portfolio Expands by Nearly 18%
One of the major highlights of SBI’s quarterly results was the expansion of its loan portfolio.
Total advances reached ₹52.08 lakh crore as of September 30, 2026, representing an increase of 17.84% from the previous year.
Domestic advances registered growth of 16.94%, while loans issued through SBI’s overseas offices increased by 22.86% in rupee terms.
Foreign office advances also grew by 13.84% when measured in US dollars.
Corporate lending recorded an increase of 16.12%, indicating continued growth in credit extended to businesses.
Agriculture and SME Lending Record Strong Gains
Agriculture and small business lending emerged as two of SBI’s faster-growing credit segments during the quarter.
Agricultural advances increased by 22.64% year-on-year, while advances to small and medium enterprises (SMEs) rose 21.97%.
The bank’s retail personal loan portfolio expanded by 14.54%.
Taken together, retail, agriculture and SME advances registered growth of 17.34% during the period.
The figures show that credit expansion was spread across individual borrowers, agricultural customers and businesses rather than being concentrated in a single lending segment.
SBI Deposits Reach ₹62.78 Lakh Crore
SBI also reported growth in its deposit base, which stood at ₹62.78 lakh crore at the end of September 2026.
This represented an increase of 12.27% over the corresponding period last year.
Current account and savings account deposits rose 8.13%, while retail term deposits increased by 16.74%.
However, the bank’s current account and savings account (CASA) ratio declined to 38.32%, compared with 39.63% a year earlier.
The lower CASA ratio indicates that these deposits accounted for a smaller proportion of the bank’s overall deposit base despite increasing in absolute terms.
SBI’s combined deposits and advances reached approximately ₹115 lakh crore.
Bad Loan Ratios Improve During September Quarter
The lender reported an improvement in asset quality, with its gross non-performing asset (NPA) ratio declining to 1.39% from 1.73% a year earlier.
The net NPA ratio also improved, falling to 0.36% from 0.42%.
The decline in both ratios indicates a reduction in the proportion of loans classified as non-performing.
SBI’s credit cost stood at 0.22%, down from 0.39% in the year-ago quarter.
The slippage ratio, which measures the movement of performing loans into the non-performing category, improved to 0.41%.
Meanwhile, the provision coverage ratio stood at 74.43%, while the ratio including the Advances Under Collection Account (AUCA) was 91.83%.
SBI Net Interest Margin Improves
The bank recorded a sequential improvement in its net interest margin (NIM), an important measure of income earned from interest-bearing assets relative to their cost.
Domestic NIM rose to 3.11% in the September quarter from 3.00% in the preceding quarter.
The whole-bank NIM increased to 2.94%, compared with 2.86% during the June quarter.
For the first six months of the financial year, domestic and whole-bank net interest margins stood at 3.06% and 2.90%, respectively.
Capital Position Remains Above Regulatory Requirements
SBI’s capital to risk-weighted assets ratio (CRAR) reached 16.09% at the end of September 2026, compared with 14.62% a year earlier.
The bank also reported a return on assets of 1.14% and return on equity of 18.68% for the first half of FY2026-27.
These indicators provide further insight into SBI’s profitability and capital position during the reporting period.
What SBI’s Q2 Results Indicate
The September quarter results show that SBI’s earnings growth was accompanied by continued expansion in lending and an improvement in reported asset quality.
Agriculture and SME advances recorded particularly strong growth, while lower loan-loss provisions helped support profitability.
At the same time, the decline in the CASA ratio highlights the importance of monitoring deposit composition as the bank’s lending business expands.
The bank’s future performance will depend partly on maintaining credit quality, managing funding costs and sustaining growth across its major business segments.
Source: State Bank of India, Q2 FY2026-27 Financial Results, announced November 3, 2026.
