November 5, 2025

State Bank of India (SBI) announced a sparkling 10% increase in its profit for the second quarter, hitting a whopping ₹20,160 crore. This strong result beat experts’ predictions, who expected a small drop in profits. The bank’s power-packed growth in retail, agriculture, and MSME loans (together called RAM advances), plus a big profit from selling part of its Yes Bank stake, pumped up the numbers. Comparing with last year, SBI earned ₹18,331 crore in the same quarter. But this time, RAM advances jumped 15% and crossed the huge mark of ₹25 lakh crore. Loans to small and medium businesses grew a fantastic 19%, while retail and agriculture loans rose 14% each. SBI’s Chairman, CS Setty, got even more confident and raised the bank’s loan growth forecast from 11-12% to 12-14%. He credited recent GST cuts and RBI's rate cuts for improving consumer demand, especially in areas like auto loans where SBI gained market share. Plus, the bank plans to boost its personal loans or ‘Xpress credit’ by double digits. One of the shining highlights was SBI’s Rs 4,593 crore profit from selling 13.18% of its stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). SBI still holds about 10% in Yes Bank and played a key part in rescuing the troubled lender in 2020 through restructuring efforts. Though net interest income rose by a modest 3% to ₹42,984 crore, the bank’s net interest margin (NIM) dipped from 3.14% to 2.97%. This happened because loan yields slightly fell after RBI’s policy rate cuts, while deposit rates did not change as fast. On the quality side, an impressive improvement came as net non-performing assets (NPAs) reduced from 0.53% to 0.42%, showing better health of loans. SBI also hit a huge milestone with its total assets and deposits crossing ₹100 lakh crore, and Chairman Setty shared big dreams: “If we want to become a top 10 among global banks in assets, we still have a long way to go. We aim to increase our total business from 20% to 25% of India’s GDP.” Corporate loans grew 7% year-on-year, with Managing Director Ashwini Tewari sharing a strong pending loan applications pipeline worth over ₹7 lakh crore. On mergers and acquisitions (M&A) financing, Setty said, “We do not mind collaborating with others,” showing openness to teamwork after RBI’s upcoming guidelines. SBI is clearly charging ahead with a winning mix of loan growth, strategic stake sales, and strong financial discipline, making it India’s bank to watch!

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Tags: State bank of india, Sbi Q2 Results, Yes Bank Stake Sale, Loan growth, Net profit, Asset quality,