State Bank of India, which became the first Indian bank to have total business cross Rs 100 lakh crore,  posted a stronger-than-expected rise in net profit for the fiscal second-quarter ended September on account of income from the stake sale in Yes Bank and higher credit growth.

The country's largest bank reported a net profit of Rs 20,160 crore in Q2FY26, up 9.97% from Rs 18,331 crore a year ago.

The state-owned lender’s loan book rose 12.73% to Rs 44.20 lakh crore in the September quarter, led by strong retail credit growth amid festive demand and tax rate rationalisation. 

SBI reaped a one-time profit of Rs 4,593 crore from stake sale in Yes Bank during the September quarter, pushing its non-interest income to Rs 19,919 crore, up 30.44% from Rs 15,271 crore in the earlier year. Fee-based income rose 25.46% year-on-year to Rs 8,573 crore. 

Operating profit rose 8.91% to Rs 31,904 crore from Rs 29,294 crore a year ago.

NII and NIM

Net interest income grew 3.28% to Rs 42,984 crore from Rs 41,620 crore in Q2FY25. 

Domestic net interest margin (NIM) declined 18 basis points to 3.09% as of 30 September 2025 compared to 3.27% in Q2FY25, but sequentially improved from 3.02% in the June quarter.

Asset quality

The bank’s asset quality improved, with gross non-performing assets (NPA) ratio standing at 1.73% in the September quarter as against 2.13% a year ago and 1.83% in the preceding quarter. 

Net NPA also improved to 0.42% from 0.53% a year ago and 0.47% a quarter ago.

Fresh slippages were at Rs 4,754 crore versus Rs 4,871 crore. The slippage ratio, or the rate at which fresh amounts of loans turn into NPA, improved by 6 basis points year-on-year to 0.45% in the September quarter.

Total biz

SBI’s total business crossed the Rs 100 lakh crore mark in the September quarter, with gross advances at Rs 44.20 lakh crore and deposits at Rs 55.9 lakh crore. A bank's total business consists of its loans and deposits. 

The lender reached another milestone with the RAM (retail, agriculture and MSME) portfolio crossing Rs 25 lakh crore.

Loan book

SBI’s gross advances grew 12.73% to Rs 44.20 lakh crore from Rs 39.21 lakh crore in the year-ago quarter. 

Domestic advances grew 12.32% YoY to Rs 37.43 lakh crore. Credit from the bank’s foreign offices rose 15.04% to Rs 6.77 lakh crore, led by operations in the US, GIFT City, the Middle East and East Asia. 

The retail personal loan portfolio grew 14.09% YoY to Rs 15.93 lakh crore and accounted for 42.6% (year-ago was 41.91%) of SBI’s domestic advances. 

Within this segment, home loans grew 15.22% YoY to Rs 8.80 lakh crore and auto loans increased 9.64% to Rs 1.29 lakh crore. Personal gold loans surged 86.87% YoY to Rs 72,554 crore while Xpress Credit grew slower at 3.20% to Rs 3.52 lakh crore. Gross NPAs across retail products stayed below 1% across categories.

Corporate loans grew at 7.10% to Rs 12.39 lakh crore from Rs 11.57 lakh crore a year ago. SME (small and medium enterprises) credit grew 18.78% YoY to Rs 5.42 lakh crore while agri loans rose 14.23% to Rs 3.68 lakh crore.

SBI’s loan portfolio remains diversified, with home loans having 23.52% share, services 14.05%, other retail 15.61% and other industries 14.55%. Infrastructure lending, however, contracted 2.98% YoY, led by declines in telecom and roads & ports exposures.

Deposits

The bank’s deposits rose 9.27% to Rs 55.92 lakh crore as of 30 September 2025 from Rs 51.17 lakh crore a year ago.

Domestic CASA (current account savings account) grew 8.06% YoY to Rs 21.24 lakh crore. Term deposits grew faster at 9.91% to Rs 32.36 lakh crore. 

The CASA ratio declined to 39.63% as of 30 September 2025 from 40.03% a year ago.

The bank’s credit-to-deposit ratio stood at 69.82%.

Capital adequacy

Capital adequacy improved to 14.62% in Q2FY26 from 13.76% a year ago. 

The bank raised Rs 25,000 crore equity capital by way of QIP, leading the government’s holding to drop to 55.03% from 56.92%.