SBIN Ltd Q2FY27 Result Fundamental Research Outlook

State Bank of India (SBI) reported a strong set of Q2FY27 results, with standalone net profit rising 14.28% YoY to ₹23,038 crore, comfortably beating market estimates of ₹22,619 crore. Net Interest Income (NII) grew 15% YoY to ₹49,413 crore, supported by robust credit growth and improved margins. Domestic NIM expanded 11 bps sequentially to 3.11%, while global NIM improved to 2.94%, reflecting better liability management and lower cost of deposits. Advances grew 18% YoY to ₹52.08 trillion, led by strong growth in retail, agriculture, SME and corporate lending, while deposits increased 12.27% to ₹62.77 trillion. However, the CASA ratio declined to 38.32% from 39.63% YoY, indicating a relatively higher dependence on term deposits. Asset quality remained encouraging, with gross and net NPA ratios improving to 1.39% and 0.36%, respectively, their lowest levels in over two decades. Provisions declined 33% YoY to ₹2,759 crore, although higher slippages at ₹5,227 crore warrant monitoring. Management maintained its credit growth guidance of 14-15% and expects NIM to remain above 3%. Overall, SBI delivered healthy earnings growth, improving margins, strong credit expansion and resilient asset quality, supporting a positive fundamental outlook. However, the stock's 1.77% decline to ₹969.55 post-results suggests some profit booking despite the earnings beat. Please Read Disclaimer & Disclosure Carefully:*****