SBI Q2 FY27 Results: Net Profit Rises 14.3% to ₹23,038 Crore as Gross NPA Drops to 1.39%

State Bank of India (SBI), the country's largest lender, reported a 14.3% year-on-year increase in standalone net profit to ₹23,038 crore for the second quarter of FY27, up from ₹20,160 crore a year earlier. Net Interest Income (NII) grew 15% year-on-year to ₹49,143 crore, beating street expectations and anchoring the late-week rally across banking stocks.

Asset quality also improved further, reinforcing confidence in public and private sector balance sheets.

What happened

SBI's quarterly bottom line was supported by healthy core loan growth, domestic Net Interest Margin (NIM) resilience at 3.11%, and a one-time pre-tax gain of ₹7,288 crore from divesting a 6.30% stake in SBI Funds Management via an Offer for Sale. Gross non-performing assets (GNPA) eased to 1.39% while Net NPA fell to 0.36%, among the cleanest readings in the bank's modern history.

Why it matters for traders

• Separate core NII from one-off gains. While the ₹7,288 crore stake sale boosted headline profit, the 15% jump in NII and 3.11% domestic NIM are what sustained institutional buying after the print.
• SBI sets the tone for PSU banks. Strong asset quality and margin stability at the flagship lender often spill over into Bank of Baroda, Canara Bank and PNB.
• Financials carry the highest weight in Nifty. Nifty's move back above 25,000 was impossible without heavy banking participation.

What to watch

• Whether SBI holds its post-earnings breakout levels as PSU bank momentum continues.
• Deposit growth versus credit growth trends across Indian banks in the second half of FY27.
• Bank Nifty option open interest concentration around the 53,500–54,500 strikes.

Educational content, not investment advice. Practise banking stock and index trades risk-free in the Trading Titans paper trading app.