CS Setty, Chairman of State Bank of India Photo Credit: Visveswaran V 10153@Chennai
State Bank of India reported a 14 percent year-on-year rise in net profit at ₹23,038 crore for the quarter ended September 30, 2026, helped by gains from the sale of stake in SBI Fund Management. The country’s largest lender posted a profit after tax of ₹ 20,160 crore in the corresponding quarter last year.
Net interest income (NII) rose 14.7 percent 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 6.13 percent stake in SBI Fund Management, which generated a pre-tax profit of ₹ 7,288.5 crore in the first half of FY27, with a gain recognized in the second quarter. The proceeds were 59 percent higher than the ₹ 4,593 crore realized from the sale of the bank’s stake in Yes Bank during the same quarter last year.
However, other income fell 24 percent 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 boost the bottom line
“Loss on mark-to-market revaluation and forex losses were close to ₹ 1,300 crore compared to ₹ 2,900 crore in Q2 last year,” said CS Setty, Chairman, SBI, adding that movements in bond yields hurt the bank’s bottom line during the quarter.
“The lower treasury is being paid by the SBI fund management of ₹ 7,580 crore and resulting in a treasury loss of ₹ 1,300 crore. Except that the figure is not too far from what has been expected on the road in the preview test,” said Siddharth Rajpurohit, Analyst Group Lead at Systematix.
Rajpurohit added that the operational performance of the bank remains healthy.
“The slippages down. The cost of credit is broadly under control. NIM (domestic) has improved by eleven basis points sequentially led by the cost of deposits,” he said.
Stock up 12%
On the liability side, deposits rose 12.3 percent to ₹ 62.7 lakh crore from ₹ 55.9 lakh crore a year earlier. The growth included $10.9 billion mobilized through the bank’s FCNR (B) deposit scheme. “Excluding FCNR (B) deposits, the overall deposit growth is at 10.5-10.6 percent,” Setty added.
Gross advances increased 17.8 percent to ₹52 lakh crore from ₹44.2 lakh crore in the year-ago quarter. Setty reiterated the bank’s guidance of 14-15 percent credit growth for FY27.
“If the nominal GDP growth is around 12-12.5 per cent, usually SBI’s growth rate is 3 to 4 per cent more than that and there the guidance is 14 per cent to 15 per cent,” said Setty.
Net interest margin (NIM) moderated marginally to 2.90 percent from 2.92 percent last year, it is good 4 bps sequentially.
Asset quality continued to improve, with gross non-performing assets (GNPA) falling to 1.39 percent of gross progress at the end of September, compared to 1.73 percent a year earlier. Net NPA also increased to 0.36 percent from 0.42 percent.
Published on November 3, 2026