Daijiworld Media Network - Mumbai
Mumbai, Nov 3: State Bank of India (SBI), the country's largest lender, reported a 14.3 per cent year-on-year increase in standalone net profit to Rs 23,038 crore for the second quarter of the financial year 2026-27, compared with Rs 20,160 crore in the corresponding quarter last year.
The growth was driven by a 14.7 per cent rise in net interest income (NII), along with lower provisions and contingencies during the quarter. The improvement came despite a significant decline in other income.
Net interest income increased to Rs 49,143 crore in Q2FY27 from Rs 42,847 crore a year earlier. On a sequential basis, it rose 4.6 per cent from Rs 46,992 crore in the first quarter.
However, other income declined 23.8 per cent year-on-year to Rs 11,777 crore from Rs 15,463 crore. It also fell 26 per cent sequentially from Rs 15,923 crore in the preceding quarter.
Provisions and contingencies dropped 21.9 per cent year-on-year to Rs 4,217 crore, compared with Rs 5,400 crore in the corresponding period last year. Sequentially, provisions declined 16.4 per cent from Rs 5,047 crore.
The bank also reported an improvement in asset quality. Its gross non-performing assets (GNPA) ratio stood at 1.39 per cent as of September 30, 2026, against 1.73 per cent a year earlier and 1.47 per cent at the end of the previous quarter.
The net NPA ratio improved to 0.36 per cent from 0.42 per cent in September 2025 and 0.38 per cent in June 2026.
In absolute terms, gross NPAs declined 4.9 per cent year-on-year and 2.3 per cent sequentially to Rs 72,529 crore. Net NPAs stood at Rs 18,546 crore, compared with Rs 18,460 crore a year earlier and Rs 19,158 crore in the preceding quarter.
The bank's provision coverage ratio stood at 74.43 per cent as of September 30.
SBI's total advances grew 18.2 per cent year-on-year to Rs 51.54 trillion as of September 30, 2026, compared with Rs 43.62 trillion a year earlier. Deposits increased 12.3 per cent to Rs 62.78 trillion from Rs 55.92 trillion.
The bank's return on assets improved to 1.19 per cent from 1.17 per cent in the year-ago period and 1.11 per cent in the preceding quarter.