India’s largest public sector lender, State Bank of India (SBI), announced its Q2 FY26 results on Tuesday, November 4, posting numbers that surpassed market expectations on multiple fronts. The bank’s performance was stronger than anticipated by the CNBC-TV18 poll, led by healthy growth in core income and improved asset quality.
Core Income and Profit Surpass Market Estimates
SBI’s Net Interest Income (NII) the bank’s core income — rose 3% year-on-year to ₹42,985 crore, outperforming the CNBC-TV18 estimate of ₹40,766 crore. The bank’s net profit for the quarter stood at ₹20,160 crore, marking a 10% increase compared to ₹18,048 crore in the same quarter last year, and well above the market forecast of ₹17,048 crore.
Analysts attributed the strong performance to improved margins, stable credit demand, and certain one-time gains recorded during the quarter.
One-Time Gains Boost Quarterly Earnings
A major factor driving SBI’s profitability this quarter was a one-time gain from its stake sale in Yes Bank, which contributed ₹4,593.22 crore, along with ₹25.46 crore earned from its stake in Jio Payments Bank. These gains helped cushion operating costs and strengthen the overall bottom line.
Stable Asset Quality and NPA Improvement
SBI maintained strong asset quality, showing improvement compared to the previous quarter. The Gross Non-Performing Assets (GNPA) ratio declined to 1.73% from 1.83% in June, while the Net NPA fell to 0.42% from 0.47% in the previous quarter.
This indicates better credit discipline and a continued focus on asset recovery. With steady growth in lending, robust profitability, and improving asset quality, analysts believe SBI remains on a solid growth trajectory.
The better-than-expected results reaffirm the bank’s position as India’s most profitable and stable public sector lender, well-positioned to capitalize on the country’s ongoing credit cycle recovery.