State Bank of India (SBIN) Q2 FY27 Results Analysis: PAT Jumps 14%, GNPA Hits Fresh Low
State Bank of India's Q2 FY27 numbers came in mixed, with revenue of Rs. 143,796.01 Cr (+6.53% YoY) and PAT growth of +14.28% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 143,796.01 Cr (+6.53% YoY) |
| PAT (Q2) | Rs. 23,037.95 Cr (+14.28% YoY) |
| EPS (Q2) | Rs. 24.96 (+13.45% YoY) |
Quarter Snapshot
SBI delivered 14.28% YoY reported PAT growth of Rs.23,037.95 Cr, but this was flattered by a Rs.7,288.47 Cr exceptional gain on the SBI Funds Management stake sale; normalized PAT grew 4.66% and PPOP fell 1.37% YoY on a 23.83% other-income decline. Asset quality hit a fresh series low (GNPA 1.39%, NNPA 0.36%), credit cost ran at ~0.22% vs the 50 bps guidance, and CET-1 rose to 13.34%, funding 18.17% advances growth. The binding watch items are cost-to-income at 55.78% versus the below-50% guidance and the open Yes Bank AT-1 overhang.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Advances growth | "supportive of a high-teens advances print" | +18.17% YoY | Played out |
| Deposit catch-up | "the quarter's genuine positive surprise" | +12.27% YoY (accelerating from 9.73%) — below system's +17% | Played out |
| Domestic NIM anchor ~3% | "looks defensible for Q2" | Not disclosed in filing | Not observable |
| Treasury recovery vs weak base | yields rose through September | Treasury result Rs.1,173.29 Cr, −70.75% YoY | Contradicted |
| Credit cost vs 50 bps guide | faces its "irrespective" test | ~0.22% annualized; provisions −21.91% YoY | Played out |
| Other-income normalization off Q1 bottom | "forex/derivatives normalization off the Q1 bottom" | Other income −23.83% YoY, −26.03% QoQ | Contradicted |
| Strike/cyber/GIL-listing watch items | probe on call | Silent in filing | Open for the call |
Read our full results preview.
Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| Overall credit growth 13–15% FY27 (Q1 FY27 call) | Standalone advances +18.17% YoY | On Track |
| Corporate credit growth 14–15% FY27 (Q1 FY27 call) | Segment split of advances not in filing; total +18.17% YoY — proxy | On Track |
| Credit cost 50 bps FY27 (recent calls) | ~0.22% annualized (derived proxy) | On Track |
| ROA 1% through the cycle (recent calls) | 1.19% annualized (filing ratio) | Met |
| Cost-to-income "below 50%" (recent calls) | 55.78% standalone (46.71% in Q1) | Missed this quarter |
| NIM expected to follow a "U-shaped, slightly front-loaded recovery" with stable repo (Q4 FY26 call) | NIM not disclosed; PPOP fell 1.37% YoY on other-income drag | Too Early |
| "No such one-off in non-interest income" for Q1 FY27 (Q1 call) | Q2 brought the Rs.7,288.47 Cr Funds Management exceptional — one-offs are episodic by design | Confirmed for Q1; Q2 new one-off |
| Treasury confidence to repeat a large portion of Q2 FY26 performance in Q3 (Q2 FY26 call) | Q2 FY27 treasury result Rs.1,173.29 Cr, −70.75% YoY — did not materialize in Q2 FY27 | Contradicted |
| Asset quality at multi-decade lows (Q1 FY27 presentation) | GNPA 1.39% / NNPA 0.36%, both lower again QoQ | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|
| GNPA % | 1.73 | 1.57 | 1.47 | 1.39 |
| NNPA % | 0.42 | 0.39 | 0.38 | 0.36 |
| PCR % | 75.79 | 75.54 | 74.20 | 74.43 |
| CRAR % | 14.62 | n/a | 15.67 | 16.09 |
| CET-1 % | 11.47 | n/a | 12.89 | 13.34 |
| ROA % | 1.17 | n/a | 1.11 | 1.19 |
Key Investment Insights
Key Positives
- NII grew 14.69% YoY to Rs.49,142.85 Cr
- GNPA fell to 1.39% (−34 bps YoY, −8 bps QoQ) and NNPA to 0.36%, a fresh series low
- Credit cost ~0.22% annualized vs the 50 bps FY27 guidance; NPA provisions fell 33.25% YoY
- CRAR 16.09% (+147 bps YoY) and CET-1 13.34% (+187 bps YoY)
- Advances grew 18.17% YoY, above the 13-15% FY27 guidance band; deposits accelerated to +12.27% YoY from +9.73% at Q1
- Retail banking segment result grew 33.86% YoY on 13.19% revenue growth with margin at 23.57%
- ROA of 1.19% annualized, above the 1% through-the-cycle guidance
Risk Factors
- Other income fell 23.83% YoY and 26.03% QoQ to Rs.11,777.46 Cr
- PPOP fell 1.37% YoY and 19.66% QoQ; normalized PAT grew only 4.66% vs reported +14.28%
- Cost-to-income of 55.78% missed management's below-50% guidance; other operating expenses rose 38.12% QoQ with driver undisclosed
- Treasury segment result collapsed 70.75% YoY to Rs.1,173.29 Cr
- Yes Bank AT-1 Supreme Court judgment (Rs.8,415 Cr write-down upheld) with no provision taken on SBI's 10.78% stake — open overhang
- Advances yield compressed: interest on advances grew 13.09% YoY vs book growth of 18.17%
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.