State Bank of India(SBI) Q2 net profit rises 10% YoY

State Bank of India(SBI)’s Q2 FY26 net profit rose 10 percent year-on-year to Rs 20,159.7 crore, driven significantly by proceeds from the lender’s partial stake sale in Yes Bank. Net interest income rose 3.3 percent year-on-year to Rs 42,985 crore from Rs 41,620 crore for the July-September quarter.

India’s largest PSU bank SBI said it divested 13.18 percent of its equity holding in Yes Bank on 17 September 2025 at Rs 21.50 per share, generating a profit of Rs 4,593.22 crore. The gain has been recognised under exceptional items and will be transferred to the capital reserve in due course.

SBI’s asset quality improved sequentially during the quarter. Gross NPA ratio declined to 1.73 percent from 1.83 percent, with gross NPAs dipping to Rs 76,243 crore from Rs 78,039.7 crore. Net NPA ratio eased to 0.42 percent from 0.47 percent, while net NPAs fell to Rs 18,460 crore from Rs 19,908 crore.

Provisions rose to Rs 5,400 crore compared with Rs 4,757 crore in the previous quarter and Rs 4,506 crore a year earlier. Pre-provision operating profit fell 10.6 percent sequentially and 6.77 percent year-on-year.

The rise in profitability was also aided by certain one-time factors during the quarter. SBI recorded a one-off gain of Rs 4,593.22 crore from its stake sale in Yes Bank and an additional Rs 25.46 crore from the sale of its stake in Jio Payments Bank.

Domestic net interest margin (NIM) dropped 18 basis points to 3.09 percent for the quarter versus 3.27 percent in the year ago period.

Operating profit for Q2 rose by 8.91 percent year-on-year to Rs 31,904 crore from Rs 29,294 crore in Q2 FY25.

The lender's whole bank advances grew by 12.73 percent year-on-year, while domestic advances grew by 12.32 percent year-on-year for the September quarter.

Retail Advances grew by 15.09 percent year-on-year, led by SME advances growth at 18.78 percent year-on-year, and by agri advances growth at 14.23 percent year-on-year and retail personal advances growth at 14.09 percent.

The lender reported interest income of Rs 1,19,654 crore in the quarter under review, up 5 percent from Rs 1,13,871 crore in the corresponding period of the previous financial year.

Meanwhile, the interest expended by the public lender stood at Rs 76,670 crore in the quarter under review, up 6 percent from Rs 72,251 crore in the corresponding quarter of the previous financial year.