SBI, Bajaj Finserv and NSE report strong Q2 earnings as economic momentum builds

India's leading financial institutions delivered a strong performance in the second quarter of the 2026-27 financial year, backed by sustained credit growth, improving asset quality, and robust consumer demand.

State Bank of India (SBI), the country's largest public sector bank, reported a 14.28 per cent year-on-year increase in standalone net profit to ₹23,038 crore for the quarter ended September 30. Financial services conglomerate Bajaj Finserv posted a 23 per cent rise in consolidated net profit to ₹2,758 crore, while the National Stock Exchange of India (NSE) registered a 23 per cent increase in quarterly profit.

The widespread earnings growth reflects healthy economic fundamentals, supported by strong festive-season borrowing and expanding corporate investment across key sectors.

SBI credit growth drives quarterly earnings

State Bank of India's net interest income grew 14.69 per cent year-on-year to ₹49,143 crore, with its domestic net interest margin expanding by 11 basis points over the previous quarter to 3.11 per cent. Total lending advances expanded 3.2 per cent quarter-on-quarter to reach ₹52.08 lakh crore.

Lending across retail, agriculture, and micro, small, and medium enterprises (RAM) rose 17.34 per cent year-on-year. Agricultural loans expanded 22.64 per cent, SME advances grew 21.97 per cent, and corporate loans increased 16.12 per cent.

Asset quality at the bank continued to strengthen. The gross non-performing asset (NPA) ratio fell by 34 basis points year-on-year to 1.39 per cent, while the net NPA ratio stood at 0.36 per cent. SBI also recorded a one-off exceptional gain of ₹7,290 crore from selling shares in its fund management arm, SBI Funds Management Limited.

Bajaj Finserv and insurance units expand operations

Bajaj Finserv reported a 17 per cent increase in revenue from operations to ₹43,416 crore for the July-September quarter. Its main lending arm, Bajaj Finance, added 4.42 million new customers and booked 13.45 million loans during the period.

Bajaj Finance's assets under management expanded 26 per cent year-on-year to ₹5.85 lakh crore, while its standalone quarterly net profit rose 29 per cent. Asset quality remained stable, with its gross NPA ratio easing to 1.06 per cent.

In the general insurance sector, Bajaj General Insurance recorded a 10 per cent rise in gross written premium to ₹7,056 crore. The insurer maintained a solvency ratio of 229 per cent, well above the regulatory threshold of 150 per cent.

The combined results underline the resilience of India's banking system and capital markets, reflecting steady economic stability and growing consumer financial activity across urban and rural markets.