New Delhi, Nov. 4 -- The September quarter (Q2FY27) of State Bank of India (SBI) was a mixed bag. An improved margin profile and asset quality were offset by softer operating performance. Domestic net interest margin (NIM) improved 11 basis points (bps) sequentially to 3.11%, clearing the bank's "above 3%" commitment.

NIM expansion was noteworthy given expectations of margin pressure from FCNR(B) or foreign currency non-resident bank deposit mobilization, which helped replace a portion of domestic wholesale funding requirements, and intensifying competition for low-cost deposits.

Lower funding costs and improved loan yields translated into stronger core net interest income (NII) of Rs.49,143 crore. SBI's 15% year-on-year (y-o-y) rise in...