When the SBI Q2 results 2025 dropped, the market paused for a moment. India’s largest lender opened its books for Q2FY26, revealing a quarter shaped by steady growth in profitability, strong loan momentum, and a slight squeeze on margins.
As someone tracking banking earnings closely every season, this update felt like a mix of strength and caution—exactly the kind of balance we often see when credit growth expands faster than deposit mobilisation.
Market Performance Snapshot
SBI’s Q2 numbers landed at a time when investors were watching the banking space for cues on margins, advances, and asset quality. The sentiment stayed neutral-to-positive as the bank delivered stability in its key operational metrics.
SBI Q2 Results FY26: Key Highlights at a Glance
Before diving into the story, here are the essential financials from the SBI Q2 earnings:
Profit Performance
- Consolidated profit: ₹21,504.49 crore (up 6.4% YoY)
vs ₹20,219.62 crore last year - Standalone profit: ₹20,159.67 crore (up 10% YoY)
vs ₹18,331.44 crore last year
Income & Margins
- Net Interest Income (NII): ₹42,984 crore (up 3.28% YoY)
vs ₹41,620 crore - Domestic Net Interest Margin (NIM): 3.09%, down from 3.27% (a decline of 18 bps)
- Operating Profit: ₹31,904 crore (up 8.91% YoY)
vs ₹29,294 crore
Balance Sheet Growth
- Overall advances growth: 12.73% YoY
- Domestic advances growth: 12.32% YoY
- Retail advances: 15.09% YoY
- SME loans: 18.78% YoY
- Agri loans: 14.23% YoY
- Retail personal loans: 14.09% YoY
- Total deposits: up 9.27% YoY
- CASA deposits: up 8.06% YoY
- CASA ratio: 39.63%
Asset Quality
- Provision Coverage Ratio (PCR): 75.79%, up 13 bps YoY
- Net NPA ratio: 0.42%, improvement of 11 bps YoY
- Gross NPA ratio: 1.73%, improvement of 40 bps YoY
Key Ratios
- Capital Adequacy Ratio (CAR): 14.62%
- Slippage ratio: 0.45%, lower by 6 bps
- Credit cost: 0.39%, up 1 bp
Inside SBI’s Q2FY26: The Story Behind the Numbers
Profitability: A Steady Climb Despite Margin Pressure
This quarter’s story begins with profitability. SBI added another quarter of stable growth with a 6.4% YoY jump in consolidated profit and a stronger 10% YoY rise in standalone profit.
The heart of every banking earnings report—NII—also expanded to ₹42,984 crore, marking a 3.28% YoY rise. It wasn’t a runaway surge, but it reaffirmed that lending activity remains strong.
Margins, however, told a different story.
The SBI Q2 NIM softened to 3.09%, dipping 18 bps YoY, showing the familiar pressure that most lenders face when funding costs inch up faster than yields.
Still, the bank delivered an 8.91% rise in operating profit, signalling better operating efficiency through the quarter.
Advances & Deposits: Strong Retail Momentum
The second part of the SBI Q2 earnings story is all about growth—broad-based and consistent.
SBI’s lending book grew across every segment:
- Retail advances stayed the standout performer with 15.09% YoY growth.
- SME loans expanded 18.78% YoY, reflecting rising business activity.
- Agri advances grew 14.23% YoY, adding to the rural credit momentum.
- Personal retail loans rose 14.09% YoY, showing continued consumer demand.
Deposits, another crucial pillar, grew at 9.27% YoY—slower than credit growth, but steady.
CASA deposits increased by 8.06% YoY, with the CASA ratio at 39.63%, a level banks closely monitor for margin stability.
Asset Quality: Healthy Improvements Across the Board
This quarter also reflected one of SBI’s strongest operational themes—cleaner asset quality.
Both gross and net NPA ratios improved:
- GNPA dropped to 1.73% (down 40 bps YoY)
- NNPA improved to 0.42% (down 11 bps YoY)
The PCR rising to 75.79% also strengthened the bank’s protection against potential stress.
Slippages stayed in check at 0.45%, while credit cost moved only slightly to 0.39%, showing controlled risk management.
Balance Sheet Strength: Ratios Stay Firm
The CAR at 14.62% reflects a sturdy capital position—important for growth without dilution.
With advances expanding and NPAs improving, SBI ends the quarter with a balance sheet that shows resilience and discipline.
Summary: SBI Q2 Results 2025 Deliver Steady Growth With Strong Advances & Improved Asset Quality
The SBI Q2 results FY26 paint a picture of a bank that is growing steadily, managing risks well, and expanding its loan book across retail, SME, and agri segments.
Profitability improved, NII rose, and asset quality strengthened—while NIM faced expected pressure due to rising funding costs.
For anyone tracking Q2 earnings news, SBI’s update stands out for:
- Consistent profit growth
- Strong retail-driven credit momentum
- Healthy asset quality trends
- Solid capital and stability ratios
A quarter that blends growth with caution—and keeps the focus on long-term stability.
Easy & quick
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