State Bank of India (SBI) reported a 14.28 per cent year-on-year increase in net profit for the July-September quarter, driven by lower provisions and healthy net interest income growth. The country’s largest lender announced its SBI Q2FY27 Results on Tuesday, with net profit standing at ₹23,038 crore and beating market estimates of ₹22,619 crore.
The bank’s net interest income grew nearly 15 per cent year-on-year to ₹49,413 crore during the quarter, supported by robust loan growth. Non-interest income declined nearly 5 per cent year-on-year to ₹19,066 crore mainly due to lower treasury income, even though the lender gained ₹7,288 crore from selling a stake in SBI Funds Management and around ₹2,400 crore from selling shares in the National Stock Exchange during its public offering. Following the announcement, SBI shares closed 1.77 per cent down at ₹969.55 on the BSE on Tuesday.
Key Points Of The SBI Q2FY27 Results
- Net profit rose 14.28 per cent year-on-year to ₹23,038 crore in Q2FY27.
- Net interest income grew nearly 15 per cent to ₹49,413 crore.
- Advances increased nearly 18 per cent year-on-year to ₹52.08 trillion.
- Gross non-performing asset ratio declined 12 basis points sequentially to 1.39 per cent.
Loan Growth And Deposit Mobilisation
SBI advances grew nearly 18 per cent year-on-year and 3.19 per cent sequentially to ₹52.08 trillion in Q2FY27. Retail loans increased 14.54 per cent to ₹18.25 trillion, agricultural advances grew 22.64 per cent to ₹4.51 trillion, small and medium enterprise loans rose 22 per cent to ₹6.61 trillion, and corporate advances grew 16.12 per cent to ₹14.39 trillion.
Deposits grew 12.27 per cent year-on-year and 4.53 per cent sequentially to ₹62.77 trillion in the second quarter. Domestic current account and savings account deposits rose 8.13 per cent year-on-year to ₹22.96 trillion, while domestic term deposits increased 14.26 per cent to ₹36.97 trillion. The CASA ratio declined to 38.32 per cent from 39.63 per cent a year earlier.
SBI Chairman C S Setty said the lender maintained its guidance of 14 to 15 per cent credit growth and 10 to 11 per cent deposit growth. Deposit growth during the period was supported by Foreign Currency Non-Resident (Bank) mobilisation, and excluding those deposits, growth was around 10.5 to 10.6 per cent.
Net Interest Margin And Asset Quality
Domestic net interest margin rose 11 basis points sequentially to 3.11 per cent, while global net interest margin increased 8 basis points to 2.94 per cent. Setty stated that improved liability management and a lower cost of deposits helped maintain and improve overall margins.
The bank raised $10.9 billion in Foreign Currency Non-Resident (Bank) deposits through a concessional swap window opened in June and used them to retire high-cost borrowings. Provisions for bad loans declined 33 per cent year-on-year to ₹2,759 crore in Q2FY27. Gross non-performing assets declined 12 basis points sequentially to 1.39 per cent, and net non-performing assets fell 2 basis points to 0.36 per cent, which Setty noted were at their lowest levels in more than two decades.
Cybersecurity And Data Breach Update
Addressing the recent data breach at SBI, Setty said root-cause analysis was still underway and would take some time to complete. The immediate focus has remained on containment measures, identifying vulnerabilities, and addressing them through a comprehensive cybersecurity drill that included application programming interface security and vulnerability assessments.
“The security of our systems and customer information is of paramount importance to us. The incident has further strengthened our resolve to bolster our cybersecurity measures and prevent any such breaches in the future,” Setty said.
Frequently Asked Questions
What was the net profit of SBI in Q2FY27?
State Bank of India reported a net profit of ₹23,038 crore for the July-September quarter of financial year 2027, marking a 14.28 per cent increase compared to the same period in the previous year.
How did SBI asset quality perform in the second quarter?
State Bank of India reported its gross and net non-performing asset ratios at their lowest levels in more than two decades, with the gross non-performing asset ratio declining to 1.39 per cent and the net non-performing asset ratio falling to 0.36 per cent.
Stay Updated with the Latest News and Current Affairs
Discover more from Current Affairs World
Subscribe to get the latest posts sent to your email.
