Brokerages anticipate State Bank of India's bottom-line performance will be supported by operating strength, though margin compression of 3 to 5 basis points remains a challenge. Deposits are estimated to reach around Rs 62.7 lakh crore to Rs 62.76 lakh crore to sustain total advances hovering above Rs 51.8 lakh crore. Furthermore, Motilal Oswal expects gross non-performing assets to improve sequentially to 1.4% with a provision coverage ratio of 74.3%. Market participants will also monitor credit costs and foreign currency deposit trends.
Key points
Net interest margins face downward sequential pressure, with forecasts projecting a drop…: Net interest margins face downward sequential pressure, with forecasts projecting a drop of 3 to 5 basis points.
Asset quality is forecast to stay stable, led by a modest decline in the gross non-perfor…: Asset quality is forecast to stay stable, led by a modest decline in the gross non-performing asset ratio.
Deposit mobilization remains a central operational priority to fund expanding credit book…: Deposit mobilization remains a central operational priority to fund expanding credit books without severely inflating funding costs.
Sources checked by our analysis pipeline: 1
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The country's largest public sector lender will announce its financial results for the quarter and half-year ended September 30, 2026, on Tuesday, November 3. The bank's Central Board will meet in Mumbai to consider the financial results.
Brokerage estimates indicate that NII could range between Rs 47,850 crore and Rs 48,562.5 crore. PAT estimates, meanwhile, range from Rs 20,378 crore to Rs 25,250 crore, reflecting differing expectations on operating performance and provisions.
Net interest margins (NIMs), deposit mobilisation, loan growth, credit costs and asset quality are likely to remain key monitorables.
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NII growth likely to remain steady
Brokerages expect SBI's NII to grow 11-13% YoY in Q2FY27, supported by continued loan growth. Sequential growth estimates range between 1.8% and 3.3%.
Motilal Oswal Financial Services (MOFSL) expects NII to rise 11.3% YoY to Rs 47,850 crore, compared with Rs 46,990 crore in the June quarter, translating into 1.8% quarter-on-quarter (QoQ) growth.
Market participants are observing downward pressure on the company's equity during the current session. Concrete explanations for the sharp drop remain absent as additional corporate or market details have not been released. Investors are left without immediate clarity regarding what triggered the negative momentum.
A new regulatory filing reveals the enterprise software company is moving forward with a substantial debt capital raise. The major capital-raising strategy encompasses a combined debt structure designed to appeal to varied investor appetites. Market participants are monitoring the multi-tranche issuance as the corporate debt market prepares for the substantial volume.
Financial analysts at Nomura have highlighted a niche tech segment capable of shielding market participants from heavy capital allocation demands. This particular pocket is expected to provide defensive insulation as artificial intelligence expenditures continue to weigh on the broader industry. Investors can utilize this designated space to maintain market exposure while mitigating the specific financial strains tied to current technology investments.