SBI net profit rises 14 per cent to Rs 23,038 crore in Q2
Strong loan growth and reduced provisions helped the State Bank of India exceed analyst expectations for the September 2026 quarter.
State Bank of India (SBI) reported a 14 per cent year on year increase in net profit to Rs 23,038 crore for the quarter ended September 2026, according to the Economic Times. This figure surpassed the Rs 22,619 crore net profit predicted by a Bloomberg poll of analysts.
The bank's total advances grew by 18 per cent to Rs 52.08 lakh crore. This included a 23 per cent increase in agriculture, 22 per cent in SME loans, and 16 per cent in corporate advances. Consequently, net interest income rose 15 per cent year on year to Rs 49,143 crore.
Loan loss provisions decreased by 33 per cent year on year to Rs 2,759 crore, while provisions for standard assets dropped by 69 per cent. Despite a fall in treasury income, the bank maintained a net interest margin of 2.90 per cent, compared to 2.92 per cent a year ago.
Chairman CS Setty said the bank managed deposit costs strictly to help maintain margins. He noted that the cost of domestic deposits fell to 4.84 per cent in September 2026 from 5.13 per cent a year ago.
Setty stated that the Indian economy remains on a growth path despite global challenges like geopolitical tensions and oil prices. He added that the bank remains watchful of food and energy prices and the impact of El Nino on the rural economy through the rabi sowing season.