Brokerages largely maintained positive ratings on State Bank of India (SBI) following its Q2 FY27 results, citing stronger net interest margins, healthy loan growth and improving asset quality. However, some flagged weaker underlying operating earnings and the contribution of exceptional gains to reported profit, with one brokerage noting that earnings per share grew just 5 percent year-on-year (YoY) excluding one-offs.
SBI shares closed 1.7 percent lower at Rs 970.25 on Tuesday, following the announcement of its fiscal second quarter results. The stock has declined 1.5 percent so far in 2026, compared with an 8.9 percent fall in the Nifty 50.
SBI reported a 14.3 percent YoY increase in net profit to Rs 23,038 crore for the July-September quarter, beating the CNBC-TV18 poll estimate of Rs 22,859 crore. The bank reported an exceptional gain of Rs 7,289 crore, compared with Rs 4,593 crore a year earlier. Net interest income (NII) rose 14.7 percent to Rs 49,143 crore, exceeding estimates, while domestic net interest margin (NIM) improved 11 basis points sequentially to 3.11 percent.
Asset quality improved, with the gross non-performing assets (GNPA) ratio declining to 1.39 percent from 1.47 percent in the preceding quarter. The net NPA ratio eased to 0.36 percent from 0.38 percent.
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