Mumbai, India – State Bank of India (SBI), the nation's largest lender, announced a significant increase in its second-quarter net profit for fiscal year 2027. The bank reported a 14.28% rise in profit after tax, reaching ₹23,038 crore in Q2 FY27, up from ₹20,259 crore in Q2 FY26.
This robust performance, released on Tuesday, November 3, 2026, was bolstered by a healthy increase in interest earned and a notable improvement in asset quality, as bad loans declined across key metrics.
Key Financial Highlights from Q2 FY27
- Net Profit: Increased by 14.28% to ₹23,038 crore.
- Interest Earned: Rose 10.46% to ₹1.32 lakh crore, compared to ₹1.19 lakh crore in the year-ago period.
- Net Interest Income (NII): Grew 14.3% to ₹49,143 crore, up from ₹42,847 crore in Q2 of the previous fiscal.
- Total Income: Saw a 6.53% increase, reaching ₹1.43 lakh crore in Q2 FY27. Notably, this was compared to ₹1.34 crore in Q3 FY26 as per the bank's statement.
Significant Reduction in Bad Loans
SBI demonstrated strong progress in managing its non-performing assets (NPAs). The amount of gross NPAs decreased by 5% year-on-year, falling to ₹72,529 crore in Q2 FY27 from ₹76,243 crore a year prior.
In percentage terms, gross NPAs dropped to 1.39% in Q2 FY27, a marked improvement from 1.73% in Q2 FY26. Similarly, net NPAs also saw a reduction, slipping to 0.36% in Q2 FY27 from 0.42% in the corresponding period last year, underscoring the bank's enhanced asset quality.
Operating Profit and Market Performance
Despite the overall positive results, operating profit experienced a slight dip of 1.4%, settling at ₹26,937 crore against ₹27,311 crore on a year-on-year basis.
Following the earnings announcement, SBI's stock was trading at ₹988.45 on the BSE, marking a modest gain of 0.15% during the current session. The lender's market capitalization expanded to ₹9.13 lakh crore, reflecting investor confidence in its performance and future outlook.