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SBI Q2 Results: Profit Rises 6.4% Amid Strong Loan Growth and Better Asset Quality

India's largest lender State Bank of India has reported solid quarterly performance with profits rising 6.4%. The bank saw healthy loan growth across all segments, particularly in retail and SME lending. Asset quality showed significant improvement with gross NPAs falling to 1.73%. However, the bank faced some pressure on net interest margins despite growth in net interest income.

Key Points: SBI Q2 Net Profit Rises 6.4% as Asset Quality Improves

  • Consolidated net profit increased 6.4% YoY to ₹21,504 crore in Q2 FY26
  • Gross NPA ratio improved significantly, declining 40 basis points to 1.73%
  • Total advances grew 12.73% with strong retail loan growth of 15.09%
  • Domestic net interest margin declined to 3.09% despite NII growth of 3.28%
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SBI Q2 results: Net profit rises 6.4 pc, asset quality improves further

SBI reports 6.4% rise in Q2 net profit to ₹21,504 crore, driven by steady loan growth and improved asset quality with gross NPA falling to 1.73%.

"SBI’s net profit rose 10 per cent YoY to Rs 20,159.67 crore, compared to Rs 18,331.44 crore in Q2 FY25 - SBI Regulatory Filing"

Mumbai, Nov 4

India’s largest lender, State Bank of India (SBI), on Tuesday, reported a 6.4 per cent year-on-year (YoY) increase in its consolidated net profit to Rs 21,504.49 crore for the second quarter (Q2) of FY26.

The bank had reported a profit of Rs 20,219.62 crore in the same period last financial year (Q2 FY25), according to its stock exchange filing.

On a standalone basis, SBI’s net profit rose 10 per cent YoY to Rs 20,159.67 crore, compared to Rs 18,331.44 crore in Q2 FY25, driven by steady loan growth and improved asset quality.

The bank’s net interest income (NII) -- the difference between interest earned and interest paid -- grew 3.28 per cent YoY to Rs 42,984 crore from Rs 41,620 crore in the same quarter last year.

However, its domestic net interest margin (NIM) declined to 3.09 per cent, down 18 basis points from 3.27 per cent a year ago, as per its regulatory filing.

SBI’s operating profit for the quarter stood at Rs 31,904 crore, up 8.91 per cent YoY from Rs 29,294 crore in Q2 FY25.

The bank continued to see healthy loan growth, with total advances rising 12.73 per cent YoY, while domestic advances increased 12.32 per cent.

Within this, retail advances grew 15.09 per cent, supported by strong growth in SME loans (up 18.78 per cent), agriculture loans (up 14.23 per cent), and personal loans (up 14.09 per cent).

Total deposits increased 9.27 per cent YoY, and CASA deposits (current account and savings account) grew 8.06 per cent. The CASA ratio stood at 39.63 per cent as of September.

On the asset quality front, SBI showed further improvement. The gross non-performing assets (NPA) ratio declined 40 basis points YoY to 1.73 per cent, while the net NPA ratio improved to 0.42 per cent, down 11 basis points from the year-ago period.

The bank’s provision coverage ratio (PCR) also improved by 13 basis points to 75.79 per cent.

- IANS

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Reader Comments

R
Rohit P
The 12.73% loan growth shows our economy is moving in the right direction. SME loans growing at 18.78% is fantastic for small businesses! Hope this translates to better service for customers too.
S
Sarah B
While the profit growth is good, I'm concerned about the declining NIM. As a shareholder, I hope management addresses this margin pressure in the coming quarters.
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Arjun K
SBI continues to be the backbone of Indian banking! The 15% growth in retail advances shows consumer confidence is strong. Keep it up! 🚀
M
Michael C
Solid numbers overall, but the 3.28% NII growth seems modest compared to profit growth. Would be good to understand the cost management strategies behind this performance.
K
Kavya N
As a small business owner who recently got an SBI loan, I'm happy to see their SME portfolio growing. The bank's support has been crucial for my expansion plans. 🙏

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