SBI Shines with a 10% Profit Jump to Rs. 20,160 Crore in Q2! Driven by the Yes Bank Stake Sale, Strong Loans, and Record-Low NPAs 

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State Bank of India (SBI) reported a 10% rise in profit for the July–September quarter, helped by the sale of its stake in Yes Bank and steady growth in loans. The bank’s net profit reached Rs. 20,160 crore compared to Rs. 18,331 crore in the same quarter last year.

This growth pushed SBI’s total business past Rs. 100 lakh crore, showing the bank’s growing strength. A major reason behind this rise was a one-time gain of Rs. 4,593 crore from selling part of its stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). Because of this sale, SBI’s non-interest income went up by over 30% to Rs. 19,919 crore.

Strong Core Performance and Loan Growth

Even with higher deposit costs, SBI’s main business stayed strong. Its operating profit increased by 8.9% to Rs. 31,904 crore. Net interest income also rose 3.3% to Rs. 42,984 crore, supported by a 12.7% jump in loans to Rs. 44.2 lakh crore. Retail, agriculture, and MSME loans showed the fastest growth, with SME loans up nearly 19% and personal loans up 14%.

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Deposits also grew by 9.3% to Rs. 55.9 lakh crore, boosted by more money in current accounts. However, the bank’s net interest margin dropped slightly to 3.1% from 3.3% last year due to rising funding costs.

Best Asset Quality in Two Decades

SBI’s asset quality improved to its best level in two decades. The gross NPA ratio fell to 1.7% and the net NPA ratio dropped to just 0.4%. Chairman CS Setty said the bank’s asset quality is the strongest it has been in 20 years because of better recoveries and careful monitoring.

The Yes Bank stake sale also marked one of the biggest foreign investments in India’s banking sector this year. After the sale, SBI still holds a 10.78% stake in Yes Bank. The deal gave a major boost to both SBI’s profits and investor confidence.

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SBI has raised its credit growth goal for FY26 to 12–14% with growing loan demand and stable performance. The strong figures indicate that SBI is managing growth, profitability, and risk very well, even though the banking industry is incurring higher costs.