SBI Reports 10% Profit Growth to ₹20,160 Crore
The State Bank of India (SBI) has announced a remarkable financial performance for the quarter ending September 2025. The bank's net profit has surged by 10%, reaching ₹20,160 crore compared to ₹18,331 crore in the same quarter last year. This growth highlights the bank's resilience and ability to navigate through challenging economic conditions.
One of the key factors contributing to this profit increase is the rise in net interest income (NII), which grew by 3.28% to ₹42,984 crore. However, it's important to note that the bank's net interest margin (NIM) has slightly declined by 18 basis points, now standing at 3.09% compared to 3.27% in the previous year. This decline indicates the competitive nature of the banking sector and the pressures faced by banks in maintaining margins.
SBI has also made significant strides in improving its asset quality. The gross non-performing assets (NPAs) have improved to 1.73%, down from 2.13% last year. This reduction is a positive sign, reflecting the bank's effective management of its loan portfolio. Additionally, the net NPA has decreased to 0.42% from 0.53%, further indicating the bank's strong recovery in asset management.
The bank witnessed fresh slippages of ₹4,754 crore in this quarter, a slight reduction from ₹4,871 crore in the previous year. The slippage ratio has improved by 6 basis points year-on-year to 0.45%. This improvement suggests that SBI is effectively managing its credit risk and maintaining a healthy loan book.
In terms of overall growth, SBI's gross advances have increased by 12.73%, reaching ₹44,19,674 crore. The retail segment has been a star performer, with advances rising by 15.09%. The small and medium-sized enterprises (SME) sector has shown an impressive growth of 18.78%, while agricultural advances and retail personal loans have also contributed significantly to this growth.
The bank's deposits have shown a healthy increase of 9.27%, amounting to ₹55,91,700 crore. Additionally, the domestic CASA (Current Account and Saving Account) has grown by 8.06%, which is crucial for maintaining liquidity and funding growth.
As of the end of Q2 FY26, SBI's capital adequacy ratio (CAR) stands strong at 14.62%, ensuring that the bank maintains a robust financial foundation. The bank's shares also witnessed a positive response, closing 0.72% higher at ₹957.05 on the BSE. Overall, SBI's performance indicates a strong and stable banking institution, poised for future growth in the Indian economy.
