State Bank of India (SBIN) Q2 25/26 earnings summary

Executive summary

• Achieved total business surpassing ₹100 trillion for the first time, with deposits at ₹55.9 lakh crore and advances at ₹44.2 lakh crore as of Q2FY26, and strong credit growth and market share gains in key segments.

• Net profit for Q2 FY26 reached ₹20,159.67 crore, up 9.97% YoY, driven by higher non-interest income and exceptional gain from Yes Bank stake sale.

• Domestic NIM improved by 7 bps QoQ to 3.09%, supported by deposit repricing and operational leverage.

• Digital adoption remains high, with 98.6% of transactions through alternate channels and 9.35 crore YONO users; YONO 2.0 and Project SARL to further drive digital transformation.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved, with unmodified auditor opinion and adherence to regulatory guidelines.

Financial highlights

• Net interest income for Q2FY26 was ₹42,984 crore, up 3.28% YoY; operating profit at ₹31,904 crore, up 8.91% YoY; consolidated net profit for Q2 FY26 was ₹21,504.49 crore.

• Non-interest income grew 30.44% YoY to ₹19,919 crore, including a one-time profit from Yes Bank stake sale.

• Fee income grew over 20% YoY, driven by higher debit card spends and processing fees.

• Gross NPA ratio improved to 1.73%, net NPA at 0.42%, PCR at 75.79%, and credit cost contained at 0.39% for Q2FY26.

• Recovery from written-off accounts reached ₹2,483 crore, with recovery rates expected around 8%.

Outlook and guidance

• Credit growth guidance raised to 12-14% for FY26, supported by robust pipeline and strong performance in home loans and Xpress Credit.

• NIM expected to remain above 3% in Q3 and Q4, with tailwinds from CRR benefit and continued deposit repricing.

• Sustained improvement in ROE and ROA trends, with ROE at 20.21% and ROA at 1.15% for H1FY26.

• Subsidiaries SBI AMC and SBI General identified as candidates for listing, with timing to be decided by respective boards.

• Funds raised through QIP in July 2025 (₹25,000 crore) are intended to augment Tier-1 capital and support future growth.