SBI Q2 FY26 Results: Profit Up 10% YoY to ₹20,160 Crore, Helped by Yes Bank Stake Sale

State Bank of India (SBI) reported a 10% jump in net profit to ₹20,160 crore for the September 2025 quarter (Q2 FY26), mainly due to gains from selling part of its stake in Yes Bank. The one-time income of about ₹4,593 crore came from selling a 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) in September. This boosted overall earnings and helped SBI beat market expectations. Net Interest Income (NII) — the difference between what the bank earns from loans and pays on deposits — rose 3.3% YoY to ₹42,984 crore. However, net interest margin (NIM), a key profitability measure, fell slightly to 3.09%, showing some pressure from higher funding costs. Asset quality improved further: Gross NPA (bad loans) dropped to 1.73% from 1.83% last quarter. Net NPA fell to 0.42% from 0.47%, showing better recovery and fewer new defaults. Growth remained strong: Advances (loans) grew 12.7% YoY, with retail loans rising 15.1%. Deposits increased 9.3% YoY. Operating profit rose 8.9% YoY to ₹31,904 crore. Provisions increased to about ₹5,400 crore versus ₹4,506 crore last year. SBI also achieved a major milestone — its total business (loans + deposits) crossed the ₹100 lakh crore mark this quarter, highlighting its leadership in the Indian banking system. What It Means SBI’s Q2 performance shows a mix of one-off gains and steady core strength. While profit got a strong push from the Yes Bank stake sale, the steady loan growth and lower NPAs show a healthier balance sheet. Margins remain under some pressure, but the slight sequential improvement in NIM is a positive sign. The bank looks well-placed for the second half of FY26, with strong capital, stable operations, and improving credit quality.