SBI Q2 FY27 Results: Net Profit, Stake Sale Gain and NIM, Explained

State Bank of India reported its results for the quarter ended 30 September 2026 on Tuesday, 3 November 2026. Standalone profit rose. A large one-time gain from selling a stake in SBI Funds Management did a lot of the work. Asset quality improved again. The stock still closed lower on the day.

A quick note: this is an explainer, not investment or financial advice.

The 60-second version

• Standalone profit: Rs 23,038 crore, up 14.28 percent year on year, Business Standard and The Hindu BusinessLine reported. That beat a market estimate of about Rs 22,619 crore, Business Standard said.
• Consolidated profit: Angel One, from the consolidated filing, put net profit at Rs 25,741.47 crore, up 19.7 percent from Rs 21,504.49 crore.
• NII: Rs 49,143 crore, up about 14.7 percent from Rs 42,847 crore, The Hindu BusinessLine reported.
• The one-time lift: About Rs 7,288 crore pre-tax from selling a stake in SBI Funds Management, booked through the P&L. NSE IPO stake-sale proceeds of about Rs 2,400 crore went to reserves instead, Business Standard said.
• NIM: Domestic 3.11 percent (up 11 bps sequentially). Global 2.94 percent (up 8 bps). Setty hopes to keep NIM above 3 percent.
• Asset quality: Gross NPA 1.39 percent, net NPA 0.36 percent, described as multi-decade lows. Provisions down about 33 percent to Rs 2,759 crore.
• The stock: Closed about 1.7 percent lower on Tuesday. BSE close Rs 969.55, NSE close Rs 970.25, as those desks printed them.

What the profit headlines measure

The Rs 23,038 crore figure that dominated Tuesday's coverage is standalone net profit for the July to September quarter. Business Standard (Subrata Panda, first published 3 November 2026, 2:10 PM IST, last updated 4 November 2026, 12:28 AM IST) put the rise at 14.28 percent. The Hindu BusinessLine (Ashokamithran T, updated 3 November 2026, 10:18 PM IST) rounded that to 14 percent and put the year-ago standalone profit at Rs 20,160 crore.

Angel One (published 3 November 2026, 4:10 PM IST) worked from the consolidated unaudited results filed with the exchanges:

Line	Q2 FY27	YoY change
Consolidated total income	Rs 1,87,756.19 crore	up 6.7% from Rs 1,75,897.79 crore
Consolidated net profit	Rs 25,741.47 crore	up 19.7% from Rs 21,504.49 crore
H1 FY27 consolidated net profit	Rs 50,320.51 crore	up 16.7%

Standalone and consolidated are different statements. The stake-sale gain sits inside both, but the subsidiary and associate lines move the consolidated profit higher.

Business Standard said the Rs 23,038 crore standalone print beat a street estimate of about Rs 22,619 crore.

The SBI Funds Management gain, and what did not hit P&L

The Hindu BusinessLine said a significant part of the profit growth came from selling a 6.13 percent stake in SBI Funds Management, which generated a pre-tax gain of Rs 7,288.5 crore in the first half of FY27, with the gain recognised in the second quarter. It said those proceeds were 59 percent higher than the Rs 4,593 crore realised from selling the bank's stake in Yes Bank in the year-ago quarter.

Business Standard put the SBI Funds Management gain at Rs 7,288 crore and said the bank also sold shares in the National Stock Exchange during its public offering, realising about Rs 2,400 crore. Those NSE proceeds were added to reserves and did not flow into the profit and loss account, Business Standard reported.

So the one-time AMC gain is in the profit print. The NSE gain is not.

NII, margins and the FCNR(B) deposit story

Net interest income is the cleaner operating line. The Hindu BusinessLine put NII at Rs 49,143 crore, up 14.7 percent from Rs 42,847 crore. Business Standard attributed the rise to robust loan growth and lower provisions.

On margins, Business Standard reported:

• Domestic NIM: 3.11 percent, up 11 basis points sequentially.
• Global NIM: 2.94 percent, up 8 basis points.

Chairman C. S. Setty told Business Standard that better liability management, especially on the cost of deposits, plus the yield on advances, helped the bank maintain and improve overall NIM. He said SBI raised $10.9 billion in FCNR(B) deposits through the concessional swap window opened in June, and used those deposits to retire some high-cost borrowings.

Setty also said the bank will continue to benefit from the 25 bps increase in the external benchmark-linked rate, which could add another 4 to 5 bps to NIM even if deposit rates adjust, and that the bank is hopeful of keeping NIM above 3 percent.

The Hindu BusinessLine printed a different NIM line: moderated marginally to 2.90 percent from 2.92 percent a year ago, but up 4 bps sequentially. That is not the same domestic 3.11 percent print Business Standard used. This piece reports both as published.

Advances, deposits and the FY27 guidance

Business Standard put whole-bank advances at Rs 52.08 trillion, up nearly 18 percent year on year and 3.19 percent sequentially. The breakdown it printed:

Book	Amount	YoY growth
Retail	Rs 18.25 trillion	14.54%
Agriculture	Rs 4.51 trillion	22.64%
SME	Rs 6.61 trillion	about 22%
Corporate	Rs 14.39 trillion	16.12%

Deposits grew 12.27 percent year on year and 4.53 percent sequentially to Rs 62.77 trillion. Domestic CASA deposits rose 8.13 percent to Rs 22.96 trillion. Domestic term deposits rose 14.26 percent to Rs 36.97 trillion. The CASA ratio fell to 38.32 percent from 39.63 percent a year earlier.

Angel One's consolidated filing note put whole-bank advances growth at 17.84 percent, domestic advances at 16.94 percent, and home loans inside retail at Rs 9,85,537 crore, up 11.94 percent.

Setty kept the earlier guidance: 14 to 15 percent credit growth and 10 to 11 percent deposit growth for FY27. Excluding FCNR(B), he put deposit growth at about 10.5 to 10.6 percent, which he said is in line with that guidance. On credit, he said the focus is growing about 3 to 4 percentage points above nominal GDP when that is around 12 to 12.5 percent.

He also said SBI had excess government securities above the statutory liquidity ratio of more than Rs 4 trillion, so it did not face immediate pressure to raise deposit rates.

Asset quality, treasury and the data-breach note

Provisions for bad loans fell about 33 percent year on year to Rs 2,759 crore, Business Standard said. Slippages still rose, to Rs 5,227 crore from Rs 4,754 crore a year earlier.

Gross NPA fell 12 bps sequentially to 1.39 percent. Net NPA fell 2 bps to 0.36 percent. Setty said 1.39 percent was the lowest gross NPA ratio in more than two decades. Angel One put the provision coverage ratio including AUCA at 91.83 percent, credit cost at 0.22 percent (down 17 bps year on year), total capital adequacy at 16.09 percent, CET-1 at 13.34 percent, and Tier-1 at 14.34 percent.

Other income was the soft spot. Business Standard put non-interest income down nearly 5 percent year on year to Rs 19,066 crore, mainly on lower treasury income, even after the AMC stake-sale gain. The Hindu BusinessLine printed a narrower "other income" line down 24 percent to Rs 11,777.5 crore, weighed down by treasury losses. Setty told that paper that mark-to-market revaluation and forex losses were close to Rs 1,300 crore, against about Rs 2,900 crore in the year-ago quarter.

On the reported data breach at SBI, Setty told Business Standard that root cause analysis was still underway. He said the immediate focus was containment, finding the vulnerabilities, and a cybersecurity drill that included API security and vulnerability assessments.

What to watch next

1. Whether NIM stays above 3 percent as Setty hopes, after the sequential domestic rise to 3.11 percent.
2. How much of Q3 profit is "clean" once the SBI Funds Management gain is no longer in the base.
3. Deposit pricing. Setty said SBI is not under immediate pressure, but that some banks may need to raise deposit rates if system credit growth stays strong.
4. Slippages versus provisions. Provisions fell hard. Slippages still rose year on year.
5. The cybersecurity follow-up. Setty said the root cause work would take time. Any regulator or customer update would sit outside this results note.

Standalone profit rose on loan growth, lower provisions and a large AMC stake sale. Consolidated profit rose faster. The stock still sold off on the day the numbers landed.

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This article is for information only and is not investment, financial or tax advice. Standalone net profit of Rs 23,038 crore, the 14.28 percent rise, the Rs 7,288 crore AMC gain figure, the about Rs 2,400 crore NSE reserves line, NII context, domestic and global NIM, advances and deposits breakdowns, provisions, slippages, NPA ratios, the stock's BSE close, the FCNR(B) figure, guidance, and the data-breach comments are from Business Standard (Subrata Panda, first published 3 November 2026, 2:10 PM IST, last updated 4 November 2026, 12:28 AM IST). NII of Rs 49,143 crore, the 14.7 percent rise, the 6.13 percent SBI Funds Management stake, the Rs 7,288.5 crore pre-tax gain, the Yes Bank comparison, the other-income and treasury-loss lines, and Setty's NIM and guidance comments as printed there are from The Hindu BusinessLine (Ashokamithran T, updated 3 November 2026, 10:18 PM IST). Consolidated total income, consolidated net profit, H1 figures, home-loan advances, capital ratios, and the NSE close of Rs 970.25 are from Angel One (published 3 November 2026, 4:10 PM IST). No later traded price is reported here. Check the exchange.