In short: SBI chairman C S Setty kept FY27 guidance of 14% to 15% credit growth and a net interest margin of at least 3%, saying a treasury loss held back profit.
Speaking for SBI: C S Setty (Chairman, State Bank of India), Anindya Sunder Paul (Deputy Managing Director - Finance, State Bank of India), Ashwini Kumar Tewari (Managing Director - Corporate Banking and Subsidiaries, State Bank of India), Shamsher Singh (Deputy Managing Director - Global Markets, State Bank of India) and Rama Mohan Rao Amara (Managing Director - Retail Business and Operations, State Bank of India).
Key takeaways from the SBI Q2 FY27 concall
- Margins. Chairman C S Setty said the domestic net interest margin improved to 3.11% in the quarter, helped by better yields on loans but mainly by a lower cost of deposits. SBI used inflows of foreign currency non-resident bank, or FCNR(B), deposits to cut wholesale deposits, and daily average balances in current and savings accounts were robust. It also passed on some finely priced working capital and treasury bill-linked loans, so corporate use of working capital lines fell.
- Loan growth. Setty said retail, farm, MSME (micro, small and medium enterprise) and corporate loans all grew at double-digit rates, and corporate loans rose 16% from a year earlier. Ashwini Kumar Tewari, managing director for corporate banking and subsidiaries, said SBI let go of quite a few deals and refinancings where yields were very low, to protect its overall loan yield, or growth would have been much higher. He said SBI wants profitable growth, not growth for its own sake.
- Deposits. Setty said deposits grew 12.27% from a year earlier, with term deposits up 14.26%. SBI raised $10.9 billion of FCNR(B) deposits against a $10 billion target and lent about $8.83 billion of it on through its foreign offices, which he called moderate leverage. He said excess SLR (statutory liquidity ratio) holdings of almost ₹3.5 lakh crore to ₹3.7 lakh crore give SBI enough liquidity without really competing for deposits.
- Asset quality. Setty said the gross non-performing asset ratio of 1.39% is the lowest in more than two decades, with provision coverage at 74%, and credit cost was 22 basis points on a ₹52 lakh crore loan book. Retail and operations managing director Rama Mohan Rao Amara said Emergency Credit Line Guarantee Scheme loans of about ₹28,800 crore make up almost half of SBI's small business loan growth and do not signal additional risk. In the three states that declared a drought, he said, about ₹10,000 crore of loans could be eligible for restructuring; Setty said few borrowers usually take it up.
- Productivity. Setty said a key priority is shifting routine transactions from branches to digital and self-service channels. Since June, more than 1.2 crore re-KYC (know-your-customer) updates have been done digitally, cutting branch intervention by more than 50% and saving 50,000 man-hours a day. More than 9,500 Seva Sarathis now help customers with routine services in busy branches, and registrations on YONO exceed 11 crore.
SBI's guidance and outlook
- Credit growth. Chairman C S Setty kept SBI's FY27 credit growth guidance of 14% to 15%, saying it will be easily achieved because the second half is generally the busy season. He expects corporate loans to keep growing at 16% for the rest of the year, with good visibility of the pipeline. He said this growth can be easily funded, and that SBI will give next year's guidance in the first quarter, as usual.
- Margins. Setty said SBI is not changing its guidance of a net interest margin of not less than 3%, though it could be higher. Tailwinds include the 25 basis point rise in its external benchmark lending rate, whose full benefit comes through over the half year, a 15 basis point rise in its marginal cost of funds based lending rate as loans reprice, and any repo rate rise in December. The headwind could be having to raise deposit rates, though he sees little pressure.
- Returns. Setty said SBI is sticking to its through-the-cycle guidance of a 1% return on assets and a 15% return on equity. In the first half, return on assets was 1.14% and return on equity 18.68%; he put first-half return on assets without the SBI Funds Management stake sale at about 0.98%. He said the 1% guidance already factors in the move to expected credit loss provisioning, unless asset quality moves violently, which SBI does not foresee.
- Costs. Anindya Sunder Paul, deputy managing director for finance, said SBI brought forward about ₹850 crore of expenses, such as IT services bills and vendor payments, so overheads do not bunch up in the March quarter; without them, overheads grew 9% from a year earlier. This will continue next quarter. Setty said the target is to keep overhead growth within 10%, and that buying priority sector lending certificates earlier in the year also lifted costs: ₹583 crore in the September quarter.
- Group stakes. Setty said SBI has no plans to exit its Yes Bank stake at the moment, and that the stake is not marked to market. On Yes Bank's additional tier 1 bonds, he said the legal process is sub judice and SBI will wait for the final outcome of the case. Asked about listing more subsidiaries, he said SBI recently listed one and nothing is on the cards for the next couple of years.
What analysts asked
- Treasury and stake sales. Analysts asked why other income showed no treasury gains and why the gain on National Stock Exchange shares bypassed profit. Chairman C S Setty said the SBI Funds Management stake-sale gain went through profit and loss but was netted against a mark-to-market loss of almost ₹1,300 crore on the treasury portfolio as bond yields moved sharply. He said SBI holds its National Stock Exchange shares as available for sale, so that gain was not routed through profit and loss. Without the treasury loss, he said, profit would have been much higher.
- Loan growth target. Analysts asked whether 14% to 15% credit growth is within reach after slow corporate lending since March. Setty said growth from March always looks slower: last year, too, corporate loans showed almost negative growth from March before a very robust second half. He turned down requests to raise guidance, and said SBI did not lean heavily on FCNR(B) deposits for lending, one reason its growth was not 20% or 21%. Next year's guidance, he said, will come next year.
- Expected credit loss. Analysts asked about the impact of expected credit loss rules. Setty said the impact on SBI's loans is ₹19,500 crore, net of tax and after existing provisions, and it can be spread over four years, so capital for growth is not a worry. The figure leaves out items not yet finalised, such as fair valuing held-to-maturity investments. He said earnings could be volatile, and SBI will watch the impact for a couple of quarters after the rules start on 1 April 2027 before giving earnings guidance.
- Retail loans. Analysts asked about slower growth in home, auto and personal loans. Setty said the home loan market has slowed, with fewer new projects in some areas and inventory build-up, but SBI gained market share and its home and home-related loans have crossed ₹10 lakh crore. After adjusting auto loan rates, since auto loans bring in new customers, SBI saw very robust growth in October. Personal loans grew 7.48%, with some borrowers moving from Xpress Credit personal loans to gold loans.
SBI Q2 FY27 results at a glance
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 | QoQ | YoY |
|---|---|---|---|---|---|
| Net interest income (₹ crore) | 49,143 | 46,992 | 42,847 | +4.6% | +14.7% |
| Operating profit (₹ crore) | 26,937 | 33,529 | 27,311 | −19.7% | −1.4% |
| Provisions (₹ crore) | 4,217 | 5,047 | 5,400 | −16.4% | −21.9% |
| Net profit (₹ crore) | 23,038 | 21,121 | 20,160 | +9.1% | +14.3% |
| Net advances (₹ crore) | 51,54,323 | – | 43,61,737 | – | +18.2% |
| Deposits (₹ crore) | 62,77,919 | 60,05,805 | 55,91,700 | +4.5% | +12.3% |
| Net interest margin (domestic) | 3.11% | 3.00% | 3.08% | +11 bps | +3 bps |
| Domestic CASA ratio (period-end) | 38.32% | 39.24% | 39.63% | −92 bps | −131 bps |
| Gross NPA ratio | 1.39% | 1.47% | 1.73% | −8 bps | −34 bps |
| Net NPA ratio | 0.36% | 0.38% | 0.42% | −2 bps | −6 bps |
| Capital adequacy ratio | 16.09% | 15.67% | 14.62% | +42 bps | +147 bps |
What changed in the quarter, figure by figure: SBI Q2 FY27 results.
How banking funds moved after SBI's results
Median one-day change in NAV between 2 Nov and 3 Nov, across the Direct-Growth plans in each group (all units for ETFs). NAVs capture the whole day's market, not only one company's results.
| Fund group | Median change | Funds |
|---|---|---|
| Banking & financial services funds | +1.64% | 25 |
| Nifty Bank index funds and ETFs | +0.98% | 24 |
| Nifty 50 index funds | +1.58% | 24 |
Source: AMFI daily NAVs.
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SBI Q2 FY27 concall: questions
When was the SBI Q2 FY27 concall?
State Bank of India held its Q2 FY27 analyst meet on 3 November 2026, led by C S Setty, Chairman, State Bank of India. It filed the transcript with the stock exchanges on 7 November 2026.
What guidance did SBI give on the Q2 FY27 call?
SBI gave guidance on credit growth, margins, returns, costs and group stakes. Chairman C S Setty kept SBI's FY27 credit growth guidance of 14% to 15%, saying it will be easily achieved because the second half is generally the busy season. He expects corporate loans to keep growing at 16% for the rest of the year, with good visibility of the pipeline. He said this growth can be easily funded, and that SBI will give next year's guidance in the first quarter, as usual.
What did analysts ask SBI on the Q2 FY27 call?
Analysts asked most about treasury and stake sales, loan growth target, expected credit loss and retail loans. Analysts asked why other income showed no treasury gains and why the gain on National Stock Exchange shares bypassed profit. Chairman C S Setty said the SBI Funds Management stake-sale gain went through profit and loss but was netted against a mark-to-market loss of almost ₹1,300 crore on the treasury portfolio as bond yields moved sharply. He said SBI holds its National Stock Exchange shares as available for sale, so that gain was not routed through profit and loss. Without the treasury loss, he said, profit would have been much higher.
Other Q2 FY27 concalls
- Reliance Industries Q2 FY27 concall · 30 October 2026
All Bank Q2 FY27 results in one place
Sources
- State Bank of India: Q2 FY27 analyst meet transcript, 7 November 2026
- State Bank of India: Q2 FY27 standalone and consolidated results, 3 November 2026
- AMFI daily NAVs, 3 Nov.
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