State Bank of India (SBI) announced its Q2 (July–September) financial results for the current fiscal year. SBI made a net profit of ₹20,160 crore, which is 10% higher than last year’s ₹18,331 crore for the same quarter. Analysts (“Street estimates”) were expecting SBI’s profit to fall by up to 17%, so the bank outperformed expectations.
Highlights of the Financial Results:
- Profit – Compared to the previous quarter (April–June 2025), profit rose by 5.5% from ₹19,160 crore to ₹20,160 crore, while net interest income (NII) increased by 4.7%.
- Interest income – The money SBI earned from loans and other interest sources rose 5% to ₹1,19,654 crore.
- Interest expenses – The money it paid out as interest on deposits and borrowings increased 6% to ₹76,670 crore.
- Net Interest Income (NII) – The difference between what SBI earns and what it pays out in interest grew 3.3% to ₹42,984 crore.
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Net Interest Margin (NIM) – It stood at 2.97% overall, and 3.09% for domestic operations — slightly steady. This shows how much profit SBI makes from its loans.
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Operating profit – SBI’s profit from operations (before taxes, etc.) grew 8.9% to ₹31,904 crore.
- Loans – Total loans rose 12.7% year-on-year, driven by strong growth across segments, retail loans grew 15.1%, SME loans 18.8%, agriculture loans 14.2%, and corporate loans 7.1%. Loans from SBI’s foreign branches also increased by 15%.
- Deposits – Total deposits grew 9.3%, with CASA (current and savings account) deposits rising 8.1%. The CASA ratio stood at a healthy 39.63%.
- Asset Quality (Bad Loans) – Asset quality improved further, with the gross NPA ratio falling to 1.73% from 2.13% last year and the net NPA ratio easing to 0.42% from 0.53%. The provision coverage ratio rose to 75.79%, indicating stronger buffers against bad loans. Credit cost remained low at 0.39%, reflecting better asset management.
- Capital Adequacy Ratio (CAR) – At 14.62%, showing SBI is financially strong and well-capitalized.
Overall SBI had a solid, steady quarter, more profit, cleaner balance sheet, and stronger digital presence. Over 64% of new savings accounts were opened digitally through the YONO app. 98.6% of SBI’s total transactions happened through digital or alternate channels, up from 98.2% a year ago.
Even though experts thought SBI’s profits would drop (because of rising costs and tight margins), the bank managed to earn more from its core lending business. That extra income kept profits strong, showing SBI’s resilience and operational strength. SBI continues to perform well despite tough conditions for banks.