SBI Q2 Results Review: State Bank of India (SBI), the country’s largest public sector lender, reported its September quarter results on November 4, posting a higher-than-expected profit. The bottomline was driven by one-off gains and strong credit growth, aided by increased retail spending during the festive season.
The PSU bank reported a net profit of ₹20,160 crore in Q2, a 10% year-on-year improvement compared to ₹18,331 crore in the July–September quarter a year ago. In September, the lender completed a 13.2% stake sale in Yes Bank to Sumitomo Mitsui Banking Corporation for ₹8,889 crore.
The net interest income (NII) during the period increased to ₹1,19,654 crore from ₹1,13,871 crore in the same quarter a year ago. The net interest margin (NIM) contracted by 18 basis points year-on-year but expanded by 7 basis points quarter-on-quarter to 3.09%.
On the asset quality front, gross non-performing assets (NPAs) declined to 1.73% of gross advances as of September 30, 2025, from 2.13% a year ago. Similarly, net NPAs, or bad loans, also declined to 0.42% of advances from 0.53% in the year-ago period.
On the lending side, the bank’s loan book expanded by 12.73% to nearly ₹44.2 lakh crore in the quarter compared to a year earlier. Retail loans grew by 14%, while corporate loans rose by 7.1%.
The bank raised its forecast for credit growth to 12–14% for the current fiscal year, up from its earlier guidance of 11–12%, Chairman C.S. Setty said in a news conference after the results.
“We are seeing increased working capital utilisation by corporates, which is a reflection of consumer demand. This sustained consumption demand is very important and critical for corporates to move towards capital expansion,” Setty said.
Strong Q2 and stable asset quality strengthen SBI share outlook
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that the bank has reported a strong performance, with a 10% YoY increase in net profit to ₹20,160 crore, driven by a one-time gain from the sale of a stake in Yes Bank.
She added that the bank’s asset quality remains stable, with improvements in gross NPA and net NPA ratios. Whole Bank Advances grew by 12.73% YoY, led by robust growth in Retail Advances (15.09% YoY) and Foreign Offices’ Advances (15.04% YoY). Deposits grew by 9.27% YoY, with CASA Deposits increasing by 8.06% YoY.
SBI’s strong performance, she noted, is attributed to improved recoveries, controlled slippages, and sound risk management. The bank’s Capital Adequacy Ratio (CAR) stands at 14.62%, indicating a strong capital position, as per Srivastava.
Technical View: Can SBI stock rally more?
The stock has been on a sustained rally since its August lows, gaining nearly 20% during this period and hitting a fresh all-time high of ₹959 apiece. In today’s trade, SBI share price ended 0.72% higher at ₹957.05 despite a crash in the Indian stock market.
Looking ahead, technical analysts expect the stock to maintain its upward momentum and potentially reach ₹1,000 apiece.
Anshul Jain, Head of Research at Lakshmishree, said, “Post a 155-day (41-week) long cup and handle breakout at ₹850, the SBI share price has rallied strongly, surpassing its previous all-time high of 894.05 and testing the ₹950 levels. The breakout structure remains robust, and both the cup and handle and the fresh ATH breakout indicate a target of ₹1000, which looks achievable in the coming sessions.”
He said that momentum indicators are aligned positively, suggesting sustained bullish strength. Any positive earnings surprise could further accelerate the move, taking the stock toward 1050 levels. “The overall setup reflects strong institutional participation and continuation of the prevailing uptrend,” he further stated.
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