State Bank of India reported a 14.3% rise in quarterly net profit as lending grew faster than deposits and the bank earned a wider margin on its domestic business. Agricultural lending rose 22.6% from a year earlier, outpacing both retail credit and the overall loan book. A gain from selling part of its asset management business also contributed to the result.
India’s largest lender by assets earned a standalone net profit of 230.38 billion rupees in the three months to 30 September, up from 201.60 billion rupees a year earlier. The figures, released on Tuesday, cover the second quarter of India’s financial year. Net interest income, the difference between interest earned and interest paid, rose 14.7% to 491.43 billion rupees.
Lending grows faster than deposits
Outstanding loans rose 17.8% year on year to about 52 trillion rupees, while deposits increased 12.3% to around 63 trillion rupees. For every 100 rupees the bank held in deposits at the end of September, it had roughly 83 rupees in outstanding loans.
Agricultural lending grew by just over eight percentage points more than retail lending, which rose 14.5%. The figures measure the value of outstanding credit. They do not show how much of the increase came from farmers borrowing for the first time or from existing customers taking larger loans.
Margins improve as bad loan ratio falls
The domestic net interest margin reached 3.11%, up from 3.00% in the preceding quarter. That meant SBI earned more net interest relative to the size of its interest-earning assets even as it expanded its loan book. Gross non-performing loans accounted for 1.39% of outstanding advances at the end of September, down from 1.47% in June.
Operating profit rose 7.3% to 342.26 billion rupees, about half the pace of growth in net profit. Lower provisions for loan losses and the stake sale helped lift the final figure. For investors assessing whether that pace can continue, the next quarter will show how well SBI can preserve its lending margin as it raises deposits to fund further growth.
Newshub Editorial in Asia – 4 November 2026
State Bank of India reported a 14.3% rise in quarterly net profit as lending grew faster than deposits and the bank earned a wider margin on its domestic business. Agricultural lending rose 22.6% from a year earlier, outpacing both retail credit and the overall loan book. A gain from selling part of its asset management business also contributed to the result.
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