CS Setty, Chairman of State Bank of India
| Photo Credit:
Visveswaran V 10153@Chennai
State Bank of India reported a 14 per cent year-on-year increase in net profit at ₹23,038 crore for the quarter ended September 30, 2026, aided by gains from the sale of its stake in SBI Fund Management. The country’s largest lender had posted a profit after tax of ₹ 20,160 crore in the corresponding quarter last year.
Net interest income (NII) rose 14.7 per cent to ₹ 49,143 crore during the reporting quarter from ₹ 42,847 crore a year earlier.
A significant part of the profit growth was driven by the sale of a 6.13 per cent stake in SBI Fund Management, which generated a pre-tax gain of ₹ 7,288.5 crore in the first half of FY27, with the gain recognised in the second quarter. The proceeds were 59 per cent higher than the ₹4,593 crore realised from the sale of the bank’s stake in Yes Bank during the same quarter last year.
However, other income declined 24 per cent year-on-year to ₹11,777.5 crore, weighed down by treasury losses. Lower provisioning at ₹2,759.1 crore (₹4,132.34 crore) also helped to boost bottomline
“The losses on the mark-to-market revaluation and the forex losses are close to ₹1,300 crore as compared to ₹2,900 crore in the last year’s Q2,” said CS Setty, Chairman, SBI, adding that movements in bond yields impacted the bank’s bottom line during the quarter.
“Lower treasury is being compensated by the SBI fund management’s ₹7,580 crore and that has led to a treasury loss of ₹1,300 crore. Except that numbers are not very off from what the street had already turned in its expectation in the preview test,” said Siddharth Rajpurohit, Lead Analyst at Systematix Group.
Rajpurohit added that the bank’s underlying operating performance remained healthy.
“The slippages are down. Credit cost is broadly in control. NIM (domestic) has improved by eleven basis points sequentially driven by cost of deposits,” he said.
Deposits rise 12%
On the liabilities side, deposits grew 12.3 per cent to ₹62.7 lakh crore from ₹55.9 lakh crore a year earlier. The growth included $10.9 billion mobilised through the bank’s FCNR (B) deposit scheme. “Excluding FCNR (B) deposits, overall deposit growth stood at 10.5-10.6 per cent,” added Setty.
Gross advances increased 17.8 per cent to ₹52 lakh crore from ₹44.2 lakh crore in the year-ago quarter. Setty reiterated the bank’s guidance of 14-15 per cent credit growth for FY27.
“If nominal GDP growth is around 12-12.5 per cent, normally the SBI growth rate is 3 to 4 percent over that and that is where the guidance of 14 per cent to 15 per cent coming from,” said Setty.
Net interest margin (NIM) moderated marginally to 2.90 per cent from 2.92 per cent a year ago, it improved 4 bps sequentially.
Asset quality continued to improve, with gross non-performing assets (GNPA) declining to 1.39 per cent of gross advances as of September-end, compared with 1.73 per cent a year earlier. Net NPA also improved to 0.36 per cent from 0.42 per cent.
Published on November 3, 2026
