SBI Q2 Results 2025: Net Profit Rises 10% YoY to ₹20,160 Crore; Loan Growth Guidance Raised to 14%

Driven by income and asset quality improvements, the State Bank of India, the country’s largest lender, registered a better-than-expected performance for the second quarter of FY26.

Highlights

🏦 Net Profit: ₹20,160 crore, up 10% YoY

📈 NII: ₹42,985 crore, up 3% YoY

💰 Loan Growth Guidance: Raised to 12–14% for FY26

🧾 Asset Quality: GNPA improves to 1.73%, NNPA to 0.42%

💸 Stock Performance: SBI shares end 0.5% higher at ₹954.6

⚙️ One-Time Gains: ₹4,593 crore from Yes Bank stake sale

Better-than-expected Q2 Earnings for SBI

The bank registered a Net Profit 10% YoY to ₹20,160 crore, against a CNBC-TV18 poll estimate of ₹17,048 crore. Net Interest Income (NII), a prime profitability metric, came in at ₹42,985 crore, up 3% YoY and against expectations of ₹40,766 crore.

One-Time Gains for Profitability

Halfway through the quarter, some performances of the SBI were knocked upwards due to stake sales.

₹4,593.22 crore from stake sales in Yes Bank, and

₹2546 million from its share in the associate, Jio Payments Bank.

In spite of the above, the bank has an operating performance which is strong, with further improvements in credit costs and resilience observed in asset quality.

Asset Quality Remains Strong

The lender reported a Gross NPA ratio of 1.73% as compared with 1.83% in the quarter ending June 2025, while the Net NPA ratio improved to 0.42% from 0.47%. On an absolute level, the Gross NPAs were ₹76,243 crore, and Net NPAs were ₹18,460 crore.

The improvement reflects strongly upon SBI's deep-rooted risk management structure, with recovery trends also being steady.

Loan Growth Guidance Has Been Raised to 14%

During the media interaction after earnings, SBI chairman CS Setty raised the loan growth guidance for FY26 to 12-14% from an earlier 12-13%.

He observed there was robust credit demand and this was expected to continue in the second half of this financial year.

"We have seen a phenomenal pickup in auto loans, and double-digit credit growth is expected for the bank as well as the system," Setty stated.

Other Key Financial Metrics

Return on Assets (RoA): 1.15% up by 2 bps YoY

Return on Equity (RoE): 20.21%, down by 157 bps YoY

Net Interest Margin (NIM): 2.97%, slightly less compared to 3.14% last year but greater than the 2.9% in June.

Credit Costs: Though improved at 0.39% vis-à-vis 0.43% estimated

Retail Advances: 12.7% YoY growth, fueled by the SME, agriculture, and retail segments

Total Advancements: ₹ 4.4 Lakh Crore plus

Deposits: ₹ 5.5 Lakh Crore plus

Market Reaction

SBI's stock logged a final increase of 0.5% to close at ₹954.6 on Tuesday, recovering from intraday lows. Earlier in the session, the stock had tumbled 0.7% before picking up steam after results.

This strong buying recommendation news continues for the stock, with 41 of 50 analysts endorsing a Buy rating, testifying to the optimism about the bank's growth trajectory and profitability.

Outlook

Enhanced margins and asset quality and upgraded loan growth guidance bode well for SBI to continue its second-half FY26 momentum. Analysts expect sustained momentum for retail and corporate credit segments as economic activity continues to expand in India.