SBI’s FY27 guidance keeps investors focused on growth
State Bank of India’s domestic NIM rose 11 bps sequentially to 3.11%, while core NII increased 15% year on year to ₹49,143 crore. A lower CASA ratio and conservative FY27 guidance kept investor focus on deposit and growth visibility.
after close1 source ↓machine-written, see hownot a recommendation
- on year
- ₹49,143 crore
State Bank of India delivered a mixed September-quarter performance, with domestic net interest margin and asset quality improving while operating momentum remained softer. Domestic NIM rose 11 basis points sequentially to 3.11%, surpassing the bank’s stated commitment to keep the measure above 3%. However, conservative FY27 guidance left investors looking for stronger growth visibility.
Core net interest income increased 15% year on year to ₹49,143 crore, a top-tier performance among large-cap banks, according to Jefferies India. The improvement came from lower funding costs and better loan yields, even as the bank used foreign-currency non-resident bank deposits to replace part of its domestic wholesale funding requirement. The margin outcome was notable because FCNR(B) mobilisation and intensifying competition for low-cost deposits had raised concerns about pressure on profitability. 💼
The funding mix remains an important watchpoint. FCNR(B) deposits can support near-term funding costs, but they do not replace the stability of low-cost current-account and savings deposits. SBI’s CASA ratio, measured as a share of domestic deposits, declined to 38.32% from 39.63% a year earlier. A further reduction could limit the benefit of loan-yield improvement by making deposit mobilisation more expensive across the banking sector.
Key Points:
• Domestic NIM reached 3.11%, up 11 basis points sequentially.
• Core NII rose 15% year on year to ₹49,143 crore.
• CASA ratio declined to 38.32% from 39.63% a year earlier.
• FCNR(B) deposits helped replace part of domestic wholesale funding, but are not a substitute for CASA deposits.
For the stock, the immediate balance is between resilient margins and a softer operating outlook. The quarter provides support for profitability through better spreads, while the CASA decline and conservative FY27 guidance keep attention on deposit growth, loan growth and the sustainability of funding costs.
Investors will watch the next disclosures on CASA mobilisation, credit growth, deposit pricing and management commentary on FY27 targets. The direction of domestic NIM will also show whether the September-quarter improvement can continue as competition for deposits intensifies.
Source: IndiaIPO, 04 Nov 2026
Not investment advice. For informational purposes only.