State Bank of India (SBI) Q2 results: Net profit rises 10% to ₹20,160 crore, net interest income advances 3%, asset quality improves

State Bank of India (SBI), the country's largest lender, on Tuesday, November 4, reported a net profit of ₹20,160 crore in second quarter of current financial year, marking an increase of 10% from ₹18,331 crore in the same period last financial year.

Its Net Interest Income (NII) or the difference between interest earned on loans and expended on deposits rose 3% in July-September period to ₹42,984 crore from ₹41,620 crore in the year-ago period.

The bank’s Net Interest Margin (NIM) for the first half of the year stood at 2.93% for the whole bank and 3.05% for the domestic book.

SBI’s whole bank advances grew 12.73% driven primarily by domestic advances, which were up 12.32% annually. The foreign offices’ advances saw stronger growth of 15.04%.

Within the domestic portfolio, retail advances surged 15.09% led by SME loans which jumped 18.78%, followed by agriculture advances rising 14.23% and retail personal loans growing 14.09%. Meanwhile, corporate advances registered 7.10% rise.

On the liabilities side, total deposits increased 9.27% while CASA deposits grew 8.06%, with the CASA ratio at 39.63% as of September 30, 2025.

The bank's provisions for bad loans registered an uptick as it provided ₹4,132 crore in second quarter as against ₹3,631 crore a year earlier.

SBI's asset quality showed an improvement as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.73% versus 2.13% in the year-ago period.

Its net NPA improved to 0.42% from 0.53%.

In absolute terms, SBI's gross NPA stood at ₹76,243 crore as against ₹83,369 crore a year earlier.

The Mumbai-based lender’s Provision Coverage Ratio (PCR) improved 13 basis points (bps) to 75.79%, while the PCR including AUCA (accounts under collection) rose 8 bps to 92.29%.

The slippage ratio showed further improvement— down 8 bps YoY to 0.60% for H1FY26 and 6 bps lower YoY at 0.45% for Q2FY26. The credit cost for the quarter remained benign at 0.39%.

The bank’s digital platform, YONO, continued to be a key growth driver, with over 64% of savings bank accounts opened digitally during the September quarter.

SBI shares rose 0.32% to ₹953 following its earnings announcement.