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State Bank of India has reported a 6.4% year-on-year rise in its consolidated net profit to Rs 21,504.49 crores for the second quarter of FY26. This growth is considerable when compared to the Rs. 20,219.62 crores revenue recorded in the same period last year.
In the standalone segment, profit jumped 10% YoY to Rs 20,159.67 crore, led by higher advances and lower slippages.
The net interest income, or the difference between interest earned and paid, went up by 3.28% Year over Year to Rs 42,984 crores from Rs 41,620 crores in the second quarter of the financial year 2025. The domestic NIM, however, decreased 18 basis points to 3.09% from 3.27% a year earlier, indicating tighter spreads.
There was nearly 9% annual growth in operating profit to Rs 31,904 crore, driven by strong loan growth and improved asset quality metrics.
The bank’s total advances were up 12.73% YoY, while domestic advances jumped up 12.32% during the quarter under review. With a 15.09% YoY increase, retail advances took the lead in the growth, with the main contributors being the small business sector (18.78%), agriculture (14.23%), and personal loans (14.09%), all showing good growth.
Total deposit growth was banked at 9.27% YoY, which included CASA deposits that grew by 8.06%. The end of September 2025 saw the CASA ratio at 39.63%, indicating stable funding.
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SBI continued to strengthen its balance sheet. The provision coverage ratio went up to 75.79% (up 13 bps YoY). Gross NPA ratio improved by 40 bps at 1.73%, while net NPA ratio declined to 0.42%, down 11 bps over the previous year. At 14.62%, the capital adequacy ratio was a lot stronger than the regulatory limit.
The slippage ratio improved by 6 basis points to 0.45%, and the credit cost increased slightly to 0.39%. The performance of Q2 highlighted the considerable growth of SBI despite the pressure on margins. The bank appears to be in a strong position, thanks to its improved asset quality and robust loan growth, to maintain the earnings trend in the second half of FY26.
