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# State Bank of India lifts quarterly profit 14% to Rs 23,038 crore as provisions fall
- URL: https://www.theglobalbanker.com/state-bank-of-india-lifts-quarterly-profit-14-to-rs-23-038-crore-as-provisions-fall/
- Published: 2026-11-03T09:58:55.000Z
- Updated: 2026-11-03T11:07:40.000Z
- Description: India's largest lender made a standalone net profit of Rs 23,037.95 crore in the September quarter, up 14.3% from a year earlier, as lower provisions offset a dip in operating profit before provisions.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific, #newsroom, #needs-photo

[State Bank of India](https://www.theglobalbanker.com/rankings/) (SBI), the country's largest lender, reported a standalone net profit of Rs 23,037.95 crore for the quarter ended 30 September 2026, up 14.3% from Rs 20,159.67 crore a year earlier. Net interest income rose 14.69% to Rs 49,142.85 crore from Rs 42,847 crore, according to Upstox.

The increase came despite a dip in operating profit before provisions, with lower provisions providing the main offset. Operating profit before provisions and contingencies slipped to Rs 26,917.24 crore from Rs 27,310.92 crore, while standalone provisions fell to Rs 4,216.86 crore from Rs 5,400.12 crore, DSIJ reported.

## WHERE THE PROFIT CAME FROM

Other income declined to Rs 11,777.46 crore from Rs 15,462.60 crore and operating expenses rose 9.6% to Rs 33,983.07 crore. Provisions for non-performing assets fell to Rs 2,759.10 crore from Rs 4,132.34 crore. The domestic net interest margin rose 3 basis points from a year earlier to 3.11%.

The half-year figures also included a pre-tax exceptional profit of Rs 7,288.47 crore from the sale of a 6.30% stake in SBI Funds Management through a pre-IPO transaction and an offer for sale, and SBI's holding in the asset manager fell to 55.56% by 30 September. Gains from stake sales in the National Stock Exchange and ARCIL went to capital reserve under revised Reserve Bank of [India](https://www.theglobalbanker.com/market-india/) rules and did not pass through the profit and loss account.

## SHORT OF ESTIMATES

Zee Business had estimated that net profit would rise 25% to Rs 25,250 crore, and it reported that the result missed estimates. In the first quarter of FY27, SBI reported a 10% rise in net profit to Rs 21,121 crore.

The bank has said it expects to keep its domestic net interest margin at around 3% in FY27 and aims to hold its return on assets at 1% or higher. C. S. Setty took charge as chairman on 28 August 2024\. SBI is by far India's largest lender, ahead of HDFC Bank and ICICI Bank, according to the TGB market profile of India.

## LENDING RUNS AHEAD OF DEPOSITS

Standalone advances grew 18.2% to Rs 51.54 lakh crore, while deposits rose 12.3% to Rs 62.78 lakh crore. The current and savings account (CASA) ratio slipped 131 basis points from a year earlier to 38.32%, Taxguru reported.

Asset quality improved. The gross non-performing asset ratio fell to 1.39% from 1.47% in the previous quarter and the net ratio to 0.36% from 0.38%, while credit cost for the quarter fell 17 basis points to 0.22%. The capital adequacy ratio was 16.09%, including a common equity tier 1 ratio of 13.34%.

SBI holds 10.78% of Yes Bank and is evaluating what Supreme Court rulings on AT-1 bond write-downs mean for that investment, without yet making specific impairment provisions, according to Whalesbook.

## THE TGB VIEW

SBI ranks 45th in the TGB Bank Rankings with US$879.2bn of assets and a 14.0% return on equity for the year to March 2026, and public sector banks held 54.9% of the consolidated balance sheet of India's scheduled commercial banks. The weaker point is core earnings: operating profit before provisions fell even as advances grew 18.2%, so this quarter's gain relies on lower provisions, including provisions for non-performing assets, which fell to Rs 2,759.10 crore from Rs 4,132.34 crore. The open question on the balance sheet is the 10.78% Yes Bank stake, for which SBI has not yet made specific impairment provisions.

*Related: [State Bank of India Q1 FY27 net profit rises 10.2% to ₹21,121 crore on 15% NII growth](https://www.theglobalbanker.com/sbi-q1-fy27-net-profit-21121-crore/)*