SBI Q2 profit rises 10% led by exceptional gain from stake sale in Yes Bank

Mumbai: State Bank of India on Tuesday reported a net profit of ₹20,160 crore in the second quarter of FY26, up 10% from the same period last year, led by an exceptional gain from the sale of a portion of its stake in Yes Bank.

SBI said on 18 September that it completed the divestment of a 13.18% stake in private sector lender Yes Bank to Sumitomo Mitsui Banking Corp. of Japan for ₹8,888.97 crore. SBI now holds a 10.8% stake in Yes Bank.

On Tuesday, SBI said the stake sale in Yes Bank led to a profit of ₹4,593.22 crore.

The country's largest lender was expected to post a standalone net profit of ₹17,523 crore in the three months ended September, down over 4% year-on-year, according to a Bloomberg analyst poll.

The bank posted a 3.3% year-on-year (y-o-y) rise in net interest income (NII) to ₹42,984 crore, the lender said on Tuesday. NII is the difference between interest earned and expended.

Its domestic net interest margin (NIM), a key indicator of profitability, rose 7 basis points (bps) sequentially but fell 18 bps y-o-y from the previous year to 3.09%.

Asset quality

The bank’s asset quality improved in Q2, with gross bad loans as a percentage of total loans down 10 bps sequentially and 40 bps YoY to 1.73%.

Its fresh slippages declined in Q2 to ₹4,754 crore as against ₹7,945 crore in the June quarter and ₹4,871 crore in the September quarter last year.

SBI reported a 12.3% YoY growth in domestic advances. Including loans from foreign offices, loan growth was at 12.7% and the aggregate loan book stood at ₹44.2 trillion.

Corporate loans grew 7% and retail loans were up 14% in the three months through September. The bank’s total deposits were at ₹55.9 trillion, up 9.3% from the same period last year.

On Tuesday, shares of SBI were trading at ₹953.50 on the National Stock Exchange, up 0.4% from the previous close, in a largely weak market.