SBI Q2 FY26 Results: Detailed Summary
1. Net Profit and Core Earnings
Net Profit: SBI reported a standalone net profit of ₹20,160 crore for Q2 FY26, marking a robust increase of approximately 10% year-on-year (YoY) from ₹18,331 crore in the corresponding quarter last year. This performance significantly beat market expectations.
Key Driver (Exceptional Gain): A major contributor to the profit surge was a one-time gain of ₹4,593 crore from the partial sale of the bank's stake in Yes Bank.
2. Loan Growth (Advances) and Deposits
Total Advances: The bank's gross advances grew by 12.73% YoY, driven by healthy demand across all segments.
Domestic Loan Growth:
Retail, Agriculture, and MSME (RAM) Advances: This segment was the primary growth engine.
SME Loans: Jumped by 18.78% YoY.
Retail Personal Loans: Grew by 14.09% YoY (Home loans within this segment rose 15.22%).
Agriculture Advances: Rose by 14.23% YoY.
Corporate Advances: Registered a growth of 7.10% YoY.
Deposits: Total deposits increased by 9.27% YoY to ₹55.91 trillion. The domestic Current Account and Savings Account (CASA) deposits grew by 8.06%.
3. Asset Quality and Provisions
The bank's asset quality showed continued improvement:
Gross Non-Performing Assets (GNPA) Ratio: Improved significantly, declining to 1.73% as a percentage of total advances (down from 2.13% a year ago).
Net Non-Performing Assets (NNPA) Ratio: Declined to 0.42% (down from 0.53% a year ago).
Provision Coverage Ratio (PCR): Improved to 75.79%.
Provisions: Loan loss provisions for the quarter were ₹4,132 crore, showing a sequential decline. The improved asset quality contributes to the bank's strengthened financial health, which is reflected in lower bad loan provisions.
4. Net Interest Income (NII) and Margins (NIM)
Net Interest Income (NII): The difference between interest earned and interest expended, rose by 3.28% YoY to ₹42,984 crore (compared to ₹41,620 crore a year ago).
Net Interest Margin (NIM): The domestic NIM stood at 3.09%, a decline of 18 basis points (bps) YoY, but a sequential improvement of 7 bps.
5. Outlook and Milestones
Credit Growth Guidance: SBI revised its credit growth guidance for the full fiscal year (FY26) upwards to 12-14%, citing optimism around double-digit growth in the RAM segment.
Milestone: During the quarter, the bank's total assets and deposits crossed the ₹100 lakh crore mark.