{"id":15111,"date":"2025-11-04T18:41:44","date_gmt":"2025-11-04T13:11:44","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=15111"},"modified":"2025-11-06T09:58:38","modified_gmt":"2025-11-06T04:28:38","slug":"sbi-q2-fy26-results","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/quarterly-results\/sbi-q2-fy26-results\/","title":{"rendered":"SBI Q2 FY26 Results: Net Profit Rises 10% YoY to \u20b920,160 Crore; NII Up 3.3%"},"content":{"rendered":"

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India\u2019s largest public sector lender, State Bank of India (SBI)<\/a>, announced a 10% year-on-year rise in standalone net profit for the July\u2013September quarter (Q2 FY26) on November 4, 2025, reaching \u20b920,160 crore, compared to \u20b918,331 crore in the same period last year. This strong performance exceeded Street estimates, which had anticipated up to a 17% decline. The results were buoyed by robust interest income and gains from the lender\u2019s stake sale in Yes Bank Ltd<\/a>.<\/p>\n

<\/span>Strong Income Growth and Operational Performance<\/strong><\/span><\/h2>\n

SBI\u2019s interest income for the quarter stood at \u20b91,19,654 crore, up 5% year-on-year, while interest expenditure rose 6% to \u20b976,670 crore. This helped the bank deliver a Net Interest Income (NII) of \u20b942,984 crore, marking a 3.3% year-on-year increase from \u20b941,620 crore in Q2 FY25.<\/p>\n

The bank\u2019s operating profit also saw healthy growth, rising 8.9% year-on-year to \u20b931,904 crore, compared to \u20b929,294 crore in the same period last year. Sequentially, NII improved by 4.7%, indicating sustained momentum in SBI\u2019s core lending operations despite margin pressures.<\/p>\n

<\/span>Exceptional Gains Boost Profitability<\/strong><\/span><\/h2>\n

A major highlight of the quarter was SBI\u2019s partial divestment of its equity stake in Yes Bank. The bank sold 13.18% of its holding on 17 September 2025 at \u20b921.50 per share, generating a profit of \u20b94,593.22 crore. The gain was recognised under exceptional items and is set to be transferred to the capital reserve in due course. Following this sale, SBI\u2019s stake in Yes Bank now stands at 10.78% as of 30 September 2025.<\/p>\n

Additionally, the bank recorded an extraordinary gain of \u20b925.46 crore from the sale of its stake in Jio Payments Bank during the quarter. These one-off items contributed significantly to the overall profitability growth.<\/p>\n

<\/span>Margins and Asset Quality Show Stability<\/strong><\/span><\/h2>\n

SBI\u2019s Net Interest Margin (NIM) for Q2 FY26 stood at 2.97%, with the domestic NIM recorded at 3.09%. Although marginally lower than last year\u2019s 3.27%, the bank continues to maintain healthy spreads across its lending portfolio.<\/p>\n

The lender also demonstrated continued improvement in asset quality. The Gross Non-Performing Asset (NPA) ratio improved by 40 basis points year-on-year to 1.73%, while the Net NPA ratio declined to 0.42% from 0.47%. The Gross NPAs fell to \u20b976,243 crore from \u20b978,039.7 crore in the previous quarter, while Net NPAs decreased to \u20b918,460 crore from \u20b919,908 crore.<\/p>\n

The Provision Coverage Ratio (PCR) rose to 75.79%, with PCR including AUCA improving to 92.29%, reflecting the bank\u2019s prudent risk management. The slippage ratio improved to 0.45% for Q2, down 6 bps year-on-year, and the credit cost stood at a controlled 0.39%.<\/p>\n


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