SBI Q2 profit jumps 20% boosted by stake sale in MF arm, NSE

New Delhi: State Bank of India (SBI) on Tuesday reported 20 percent jump in consolidated net profit at Rs 25,361 crore for September quarter FY27, buoyed by gains through stake sale in its mutual fund arm and NSE through IPOs.

On a standalone basis, the largest bank in the country reported 14 percent rise in net profit at Rs 23,038 crore.

Follow The PSUWatch Channel on Whatsapp

State Bank of India's core net interest income moved up 14.69 percent to Rs 49,143 crore on the back of a 17.84 percent growth in gross advances and a slight compression in the net interest margin at 2.94 percent.

Chairman C S Setty expressed contentment at the bank's ability to push up domestic NIMs by 0.11 percent on-quarter to 3.11 percent, and added that SBI will keep it above the 3 percent mark going ahead as well. RBI's rate hikes alone will benefit the margin by 0.04-0.05 percent.

Setty said the bank is retaining its credit and deposit growth targets for FY27 at 14-15 percent and 10-11 percent, respectively.

It mobilized USD 10.9 billion of deposits under RBI's FCNR(B) concessional swap facility and gave loans of USD 8.83 billion to the diaspora depositors under the scheme's leverage facility.

Domestic retail advances grew 14.54 percent during the quarter, including 11.94 percent acceleration in home loans, while the domestic corporate advances grew 16.12 percent.

Managing Director Ashwini Kumar Tewari said the bank has a corporate loan pipeline of Rs 7.8 lakh crore as of now which is from a diverse set of industries.

Amid the heightened public interest in data centres' growth, Setty said that the exposure to the sector is not very significant as the bank looks at a slew of factors like tenancy before lending. A senior official pegged the overall loanbook from the sector at Rs 6,000 crore.

The bank has extended loans of Rs 28,000 crore under the Emergency Credit Line Guarantee Scheme 5 which has been introduced to protect sectors impacted by the West Asia war, a senior official said, adding that it also includes some of the domestic airlines.

The non-interest income declined by nearly 5 percent to Rs 19,066 crore during the quarter despite a Rs 7,288 crore gain from the stake sale in SBI Funds Management's IPO. Setty said the treasury operations had a major impact on the hardening yields.

It also booked a gain of Rs 2,800 crore on the NSE stake sale, and the IPO also helped through a revaluation of its investment value.

The fresh slippages came down to Rs 5,227 crore during the quarter, and gross non-performing assets ratio improved to 1.39 percent as of September 30, 2026.

With reports of drought amid the super El Nino, Setty said the bank has not witnessed any impact on the asset quality and added that the impact on rural consumption will also need to be tracked going ahead.

Overall provisions for the quarter came in at Rs 4,217 crore as against Rs 5,400 crore in the year-ago period, and Setty said the bank will have to set aside Rs 19,500 crore for the transition to the expected credit loss (ECL)-based system.

Follow PSU Watch on LinkedIN

Setty, who also chairs the industry body IBA, hinted that some part of the ECL regulation may get tweaked as the banks are in conversation with the RBI on it and the central bank has also convened a meeting of bank chief executives on the matter.

Its overall capital adequacy stood at 16.09 percent as of September 30, as against 15.67 percent in the quarter-ago period.

The SBI scrip closed 1.77 percent down at Rs 969.55 on the BSE on Tuesday.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)