Brokerages had estimated up to a 17% year-on-year decline in SBI’s Q2 net profit, projecting it in the range of Rs 17,700 crore to Rs 18,800 crore.
The Net Interest Income (NII) for Q2FY26 rose 3.3% year-on-year to Rs 42,984 crore, compared to Rs 41,620 crore in Q2FY25.
The lender reported interest income of Rs 1,19,654 crore in the quarter under review, up 5% from Rs 1,13,871 crore in the corresponding period of the previous financial year.
Meanwhile, the interest expended by the public lender stood at Rs 76,670 crore in the quarter under review, up 6% from Rs 72,251 crore in the corresponding quarter of the previous financial year.
SBI’s net profit grew 5.5% sequentially to Rs 20,160 crore, compared to Rs 19,160 crore in Q1FY26, while NII rose 4.7% quarter-on-quarter to Rs 42,984 crore from Rs 41,072 crore in the April–June quarter. The bank’s Net Interest Margin (NIM) for Q2FY26 stood at 2.97%, with domestic NIM at 3.09%. For H1FY26, the overall and domestic NIMs were 2.93% and 3.05%, respectively. SBI’s operating profit for Q2FY26 increased 8.9% YoY to Rs 31,904 crore.SBI’s operating profit for Q2FY26 rose 8.9% year-on-year to Rs 31,904 crore.
Balance Sheet
The bank’s total advances grew 12.7% year-on-year (YoY), with domestic advances rising 12.3%. Within this, retail advances grew 15.1% YoY, led by SME advances up 18.8%, agriculture advances up 14.2%, and retail personal advances up 14.1%.
Corporate advances registered a YoY growth of 7.1%, while advances from foreign offices rose 15%.
Total deposits increased 9.3% YoY, with CASA deposits up 8.1%. The CASA ratio stood at 39.63% as of September 30, 2025.
Asset Quality
The Gross NPA ratio improved 40 bps YoY to 1.73%, while the Net NPA ratio improved 11 bps to 0.42%.
The Provision Coverage Ratio (PCR) rose 13 bps YoY to 75.79%, and PCR including AUCA improved 8 bps to 92.29%.
The slippage ratio for H1FY26 improved 8 bps YoY to 0.60%, while for Q2FY26, it improved 6 bps to 0.45%.
Credit cost for Q2FY26 stood at 0.39%.
Capital Adequacy
The Capital Adequacy Ratio (CAR) at the end of Q2FY26 stood at 14.62%.
Alternate Channels
Over 64% of SB accounts were opened digitally through YONO in Q2FY26. The share of alternate channels in total transactions increased from 98.2% in H1FY25 to 98.6% in H1FY26.