SBI's Q2 Net Profit Rises 14 Pc To Rs 23, Crore

(MENAFN- IANS) Mumbai, Nov 3 (IANS) State Bank of India (SBI) on Tuesday reported a 14.3 per cent year-on-year (YoY) rise in net profit to Rs 23,038 crore for the September quarter of FY27, aided by strong growth in net interest income and lower provisions.

The largest public sector bank reported a net profit of Rs 20,160 crore in the corresponding period last financial year (Q2 FY26), according to its stock exchange filing.

The bank's earnings were supported by robust growth in core income and a decline in provisions during the quarter.

Net interest income (NII), which represents the difference between interest earned and interest paid, rose 15 per cent year-on-year to Rs 49,143 crore in the July-September quarter, compared with Rs 42,847 crore a year ago.

Despite the strong income growth, SBI's operating profit slipped 1.4 per cent to Rs 26,937 crore from Rs 27,311 crore in the year-ago quarter.

The lender also reported a one-time gain of Rs 7,288 crore during the quarter, providing an additional boost to earnings, according to its stock exchange filing.

Provisions declined significantly to Rs 4,217 crore in the September quarter from Rs 5,400 crore in the corresponding period last year. On a sequential basis, provisions were also lower than Rs 5,047 crore reported in the June quarter.

Asset quality improved further during the quarter, with the gross non-performing asset (GNPA) ratio falling to 1.39 per cent from 1.47 per cent in the preceding quarter.

The bank's net NPA ratio eased to 0.36 per cent from 0.38 per cent quarter-on-quarter.

SBI reported a slippage ratio of 0.50 per cent, while its domestic net interest margin (NIM) stood at 3.11 per cent in the quarter under review.

Following the earnings announcement, SBI shares traded 0.73 per cent lower at Rs 979.75. In comparison, the Sensex was up 1.25 per cent at around 76,641.

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