Yes Bank stake sale lifts SBI Q2 profit 10% YoY to Rs 20,160 crore; NII up 3%

State Bank of India (SBI), the country’s largest lender, reported a 9.97 per cent year-on-year (YoY) rise in standalone net profit for the September quarter of FY26, aided by a one-time exceptional gain. The bank’s profit after tax climbed to Rs 20,160 crore in Q2FY26, up from Rs 18,331 crore a year earlier, supported by a Rs 4,593.22 crore gain from the divestment of its 13.18 per cent stake in Yes Bank.

Net Interest Income (NII) grew 3.28 per cent YoY to Rs 42,984 crore from Rs 41,620 crore in the year-ago quarter. However, margins remained under pressure, with the domestic Net Interest Margin (NIM) contracting 18 basis points (bps) to 3.09 per cent from 3.27 per cent in Q2FY25.

Provisions (excluding tax) rose to Rs 5,400.12 crore, higher both sequentially and annually, compared with Rs 4,759.20 crore in Q1FY26 and Rs 4,505.73 crore in Q2FY25.

Despite elevated provisioning, asset quality improved further. The Gross Non-Performing Assets (GNPA) ratio declined 40 bps YoY to 1.73 per cent, while the Net NPA (NNPA) ratio fell 11 bps to 0.42 per cent.

On the growth front, SBI’s credit book continued to expand strongly. Total advances rose 12.73 per cent YoY, led by a 15.09 per cent jump in retail loans, with home loans up 15.22 per cent. Deposits grew 9.27 per cent YoY, while the bank’s CASA ratio stood at 39.63 per cent as of September 30, 2025.