SBI Q2 Results: Standalone profit rises 14% YoY to Rs 23,038 crore, NII jumps 15%

India's largest public sector lender, State Bank of India (SBI) on Tuesday reported 14% year-on-year (YoY) growth in its standalone net profit at Rs 23,038 crore in the second quarter. The same stood at Rs 20,160 crore in the same quarter last year.

Net interest income in the reporting period increased 15% YoY to Rs 49,143 crore.

The growth was supported by an expansion in the bank's loan book, which crossed Rs 52 lakh crore during the quarter. Operating profit rose 7% YoY to Rs 34,226 crore from Rs 31,904 crore. Interest income increased 10% to Rs 1.32 lakh crore, while interest expenses grew at a slower pace of 8% to Rs 82,876 crore.


A sharp reduction in provisions for bad loans also supported SBI's profitability. Loan-loss provisions declined 33% to Rs 2,759 crore from Rs 4,132 crore a year earlier. They were also lower than the Rs 3,359 crore reported in the preceding quarter.

Loan book

SBI's gross advances increased 18% YoY to Rs 52.08 lakh crore as of September 30, compared with Rs 44.2 lakh crore a year earlier. Domestic advances grew 17%, while overseas advances rose 23% in rupee terms.

The growth was broad-based, with agriculture, small businesses, retail and corporate lending all recording double-digit increases.

Agriculture advances grew 23% YoY, while loans to small and medium enterprises increased 22%. Retail personal advances rose 14% to Rs 18.25 lakh crore. Within the retail portfolio, home loans grew 11.9% to Rs 9.86 lakh crore from Rs 8.80 lakh crore a year earlier.

Corporate advances increased 16.1% to Rs 14.39 lakh crore, indicating continued demand for credit from businesses. The expansion in lending helped SBI's overall business, comprising deposits and advances, reach approximately Rs 115 lakh crore.

Deposits

SBI's total deposits increased 12% to Rs 62.78 lakh crore from Rs 55.92 lakh crore a year earlier. Deposits grew 4% sequentially. Low-cost current account and savings account (CASA) deposits increased 8%, while domestic term deposits grew 14%.

However, the CASA ratio declined to 38.32% from 39.63% a year earlier, reflecting faster growth in term deposits than in low-cost deposits. Despite the change in deposit mix, the bank reported an improvement in its net interest margin during the quarter.

Domestic net interest margin rose to 3.11% from 3% in the June quarter, an improvement of 11 basis points. It was also three basis points higher than the 3.08% reported a year earlier. The whole-bank net interest margin stood at 2.94%, improving eight basis points sequentially.

Bad loans decline

SBI's asset quality continued to improve, with its gross non-performing asset (NPA) ratio declining to 1.39% from 1.73% a year earlier and 1.47% in the June quarter. The net NPA ratio fell to 0.36% from 0.42% a year earlier.

In absolute terms, gross bad loans declined to Rs 72,529 crore from Rs 76,243 crore in September 2025. Net bad loans stood at Rs 18,546 crore.

The bank's slippage ratio, which measures fresh loans turning bad, improved to 0.41% from 0.45% a year earlier. Credit cost declined to 0.22% from 0.39%, indicating a lower provisioning burden. The provision coverage ratio, including accounts written off, stood at 91.83%.

SBI also strengthened its capital position during the quarter. Its capital adequacy ratio increased to 16.09% from 14.62% a year earlier, while its common equity tier-1 ratio improved to 13.34% from 11.47%.