State Bank of India delivered a robust financial performance in the second quarter of the current fiscal year, clocking a 14 percent year-on-year rise in net profit to ₹23,038 crore. During the corresponding July to September quarter of the previous financial year, the public sector banking giant had generated a profit of ₹20,160 crore. The earnings momentum was underpinned by healthy growth in total revenues alongside steady expansion in core interest receipts.
Revenue Growth and Healthy Expansion in Interest Income
According to regulatory disclosures submitted to the stock exchanges, the bank's total income for the quarter ended September 2026 climbed to ₹1,43,796 crore. This compares with ₹1,34,979 crore recorded in the same period twelve months earlier. Earnings generated from core interest-bearing activities witnessed substantial momentum as well. Interest revenue advanced to ₹1,32,019 crore in the second quarter, rising from ₹1,19,654 crore in the matching quarter of the prior year. The expansion reflects accelerated loan traction and stronger returns across the bank's lending portfolios.
Asset Quality Strengthens as Non-Performing Assets Contract
A major highlight of the quarterly scorecard was the visible progress in bad loan management, with non-performing assets continuing their downward trajectory. As of September 30, 2026, the gross non-performing asset ratio contracted to 1.39 percent of gross advances. In the corresponding period a year ago, gross bad loans stood at 1.73 percent. Similarly, net non-performing assets eased to 0.36 percent, down from 0.42 percent reported in the year-ago quarter. The steady contraction demonstrates healthier balance-sheet hygiene and a shrinking portion of stressed debt relative to overall credit deployment.
Sharp Reduction in Provisions for Stressed Accounts
With delinquent accounts shrinking, the lender experienced a marked easing in provisioning requirements during the quarter. State Bank of India set aside ₹2,759 crore as provisions for bad loans in the second quarter, representing a sharp drop from the ₹4,132 crore allocated during the corresponding quarter of the previous financial year. The reduced necessity to cushion against impaired credit preserved operating income and directly bolstered bottom-line expansion.
Consolidated Group Profit Advances 20 Percent
On a consolidated footing covering the entire State Bank of India group, profitability expanded at an even quicker clip. Consolidated net profit rose 20 percent to reach ₹25,361 crore, up from ₹21,137 crore registered in the second quarter of the preceding year. Concurrently, total consolidated revenue advanced to ₹1,87,756 crore against ₹1,75,898 crore reported in the matching quarter of the previous fiscal period.
