State Bank of India (SBI), India's largest lender, reported a 9.97% year-on-year increase in net profit for the second quarter of fiscal year 2026 (Q2FY26), driven by higher non-interest income and improved asset quality. The bank's Chairman, CS Setty, announced that SBI's total business crossed ₹100 trillion in Q2 FY26, marking a significant milestone.

Key Financial Highlights

• Net profit rose to ₹20,160.00 crores in Q2FY26, up from ₹18,331.00 crores in Q2FY25.
• Operating profit increased by 8.91% YoY to ₹31,904.00 crores.
• Net Interest Income (NII) grew by 3.28% YoY to ₹42,984.00 crores.
• Non-interest income surged by 30.44% YoY to ₹19,919.00 crores.

Asset Quality Improvement

SBI continued to strengthen its asset quality in Q2FY26:

• Gross Non-Performing Asset (GNPA) ratio improved to 1.73%, down 40 basis points YoY.
• Net NPA ratio decreased to 0.42%, an improvement of 11 basis points YoY.
• Provision Coverage Ratio (PCR) increased to 75.79%, up 13 basis points YoY.

Robust Business Growth

The bank reported strong growth across its business segments:

• Total advances crossed ₹44 trillion, registering a 12.73% YoY growth.
• Deposits grew by 9.27% YoY to ₹55.91 trillion.
• Domestic advances increased by 12.32% YoY, with retail personal loans growing by 14.09%.
• CASA (Current Account Savings Account) deposits grew by 8.06% YoY.

Segment-wise Performance

Corporate Credit Recovery

Chairman CS Setty highlighted the improvement in corporate credit growth:

• Corporate credit growth improved from nearly flat last quarter to 7.1% in Q2.
• Expectations are for corporate credit growth to reach double digits in the next two quarters.
• The recovery is expected to be led by mid-corporates and central PSUs, particularly in steel and cement sectors.
• Large corporates continue to use existing cash reserves.

Asset Quality and Margins

• SBI maintains strong asset quality with slippages expected around 0.50%.
• Credit costs are projected to be below 50 basis points for FY26.
• Net interest margins improved in Q2 due to better liability management and growth in low-cost CASA deposits.
• Exit NIMs for FY26 are projected to exceed 3%.

Capital Adequacy and Profitability

• Capital Adequacy Ratio stood at 14.62% as of September 30, 2025.
• Return on Assets (ROA) for H1FY26 was 1.15%.
• Return on Equity (ROE) for H1FY26 reached 20.21%.

Digital Banking Initiatives

SBI continued to strengthen its digital banking offerings:

• 64% of savings bank accounts were opened digitally through YONO in Q2FY26.
• The share of alternate channels in total transactions increased to 98.6% in H1FY26.

Additional Information

• The bank plans to spread expected credit loss provisions over five years.
• No immediate decision timeline has been set regarding SBI's 10% stake in Yes Bank.

CS Setty, Chairman of SBI, commented on the results, stating, "Our Q2FY26 performance reflects the bank's resilience and adaptability in a dynamic economic environment. The consistent improvement in asset quality, strong growth across business segments, and the milestone of crossing ₹100 trillion in total business underscore our strategic focus and operational efficiency."

As India's largest bank, SBI's performance serves as a barometer for the overall health of the country's banking sector. The bank's robust growth in advances and deposits, coupled with improved asset quality and recovering corporate credit, indicates a positive outlook for the Indian economy and financial services industry.

State Bank of India (SBI), India's largest public sector bank, has announced its quarterly results for the period ended September 30, 2025, demonstrating strong financial performance.

Key Highlights

• Net profit reached ₹20,169.00 crore
• Total income stood at ₹1,34,971.00 crore
• Operating profit before provisions was ₹27,310.00 crore
• Completed a Qualified Institutional Placement raising ₹25,000.00 crore

Financial Performance

SBI reported a net profit of ₹20,169.00 crore for the quarter. The bank's total income for the period was ₹1,34,971.00 crore, while total expenditure amounted to ₹1,07,661.00 crore. Operating profit before provisions stood at ₹27,310.00 crore.

Provisions and Asset Quality

The bank made provisions of ₹4,024.00 crore during the quarter. The Provision Coverage Ratio stood at 75.79% as of September 30, 2025.

Strategic Initiatives

SBI successfully completed a Qualified Institutional Placement, raising ₹25,000.00 crore through the allotment of equity shares at ₹817.00 per share.

The bank divested its 13.18% stake in Yes Bank Limited for ₹21.50 per share, resulting in an exceptional profit of ₹4,593.00 crore.

Furthermore, SBI increased its shareholding in SBI General Insurance Company to 73.89%. The bank also divested its entire 14.96% stake in Jio Payments Bank.

Outlook

SBI's quarterly results demonstrate its ability to maintain profitability. The capital raise and strategic divestments position the bank for potential growth in the coming quarters.

As India's largest public sector bank, SBI's performance may have implications for the banking sector and could reflect ongoing trends in the Indian economy.