State Bank of India Reports Strong Q2 FY26 Performance with Improved NIMs and Robust Credit Growth

State Bank of India (SBI), India's largest public sector bank, has reported a robust performance for the second quarter of fiscal year 2026, demonstrating resilience amid global economic challenges. The bank's results highlight significant improvements in key financial metrics and strategic initiatives aimed at enhancing operational efficiency.

Financial Highlights

SBI reported a net profit of Rs 21,860.6 crore for Q2 FY26, which includes an exceptional gain of Rs 4,593 crore from the sale of YES Bank stake. Excluding this one-time gain, the bank's core performance remains strong, with domestic Net Interest Margins (NIMs) improving by 7 basis points quarter-on-quarter to 3.09%.

The bank's financial performance for Q2 FY26 can be summarized as follows:

Metric	Q2 FY26 (Rs crore)	YoY Change
Net Profit	21,860.60	6.30%
Net Interest Income	50,037.60	5.78%
Other Income	50,883.90	19.01%
Operating Profit	55,774.60	-4.39%

Credit Growth and Asset Quality

SBI has demonstrated strong credit growth, with the bank's total advances reaching Rs 33,49,312 crore, marking a year-on-year increase of 12.39%. The bank's Chairman, C.S. Setty, expressed confidence in achieving the targeted annual credit growth of 12-14%.

Asset quality continues to improve, with Gross Non-Performing Assets (GNPA) ratio decreasing to 2.55% from 2.76% in the previous quarter. The Net NPA ratio also improved to 0.64%.

Capital Adequacy and Fundraising

SBI successfully completed India's largest Qualified Institutional Placement (QIP) offering, raising Rs 25,000 crore. The issue was oversubscribed 4.5 times, with demand exceeding Rs 1.1 trillion, demonstrating strong investor confidence in the bank.

The bank's capital adequacy ratio stood at 14.28% as of September 30, 2025, well above the regulatory requirements.

Strategic Initiatives

Chairman Setty highlighted several strategic initiatives during the analyst meet:

Project SARAL: Launched on July 31, 2025, this initiative aims to simplify and redesign operational processes in retail banking.
YONO 2.0: The bank is set to launch an upgraded version of its digital banking platform, enhancing customer experience and digital capabilities.
Global Trade Finance Centres: SBI has consolidated its 17 trade finance processing centers into two global centers in Kolkata and Hyderabad, leveraging digital technology for improved efficiency.
Focus on CASA: The bank continues to emphasize growth in Current Account and Savings Account deposits, with the CASA ratio standing at 39.63%.

Outlook

SBI maintains a positive outlook for the second half of FY26, expecting continued demand for credit. The bank's management anticipates deposit and credit growth for scheduled commercial banks to remain in the range of 11-12% during FY26.

Chairman Setty stated, "SBI's path is clear. We will defend and extend the liability franchise, grow faster than industry where RORWA is superior, institutionalize execution and deliver fair outcomes for all stakeholders."

While the global economic environment presents challenges, SBI's strong performance and strategic initiatives position it well for sustained growth and improved market share in key segments.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.60%	-1.66%	+1.85%	+18.88%	+15.65%	+291.70%

State Bank of India (SBI), India's largest public sector bank, has set an ambitious goal to join the ranks of the world's top 10 most valued banks by market capitalization by 2030. This announcement comes on the heels of SBI achieving a significant milestone - crossing the ₹100 lakh crore mark in total business, which encompasses both advances and deposits.

Key Highlights

SBI aims to be among the world's top 10 most valued banks by market cap by 2030
Bank crossed ₹100 lakh crore in total business (advances + deposits)
Market capitalization surpassed $100 billion
Reported a 10% year-on-year increase in net profit to ₹20,160 crore in the latest quarter

Financial Milestones and Targets

SBI has joined the elite club of Indian companies with a market capitalization exceeding $100 billion, placing it alongside industry giants such as HDFC Bank, TCS, and Reliance Industries. The bank has also set internal targets to maintain robust financial health:

Metric	Current	Target
Capital Adequacy Ratio	14.62%	15.00%
Core Equity (CET-1) Ratio	11.47%	12.00%

Business Performance

The bank's Chairman, CS Setty, announced these ambitious targets following SBI's impressive business growth. The latest financial results showcase the bank's strong performance:

Metric	Value (in ₹ Lakh Crore)
Advances	44.20
Deposits	55.92
Total Business	100.12

Quarterly Performance

SBI reported a solid financial performance in its latest quarterly results:

Net profit increased by 10% year-on-year to ₹20,160 crore
Growth drivers included:
- Expansion in retail, agriculture, and MSME advances
- Gains from selling its stake in Yes Bank

The bank's strong performance across various segments and its strategic moves in the market have contributed to its impressive growth trajectory. As SBI sets its sights on becoming one of the world's most valued banks, it continues to strengthen its position in the Indian banking sector while expanding its global footprint.

With its robust financial health and ambitious targets, State Bank of India is positioning itself as a formidable player in the global banking arena, reflecting the growing strength and potential of India's financial sector on the world stage.