SBI Reports 10% Profit Growth with Strong Q2 Performance

State Bank of India (SBI) delivered steady second-quarter earnings, supported by healthy loan growth and improved asset quality, even as higher provisions and a marginal dip in operating profit weighed on performance. On a standalone basis, the largest public sector lender reported a 10 percent year-on-year rise in net profit to Rs 20,159.67 crore compared with Rs 18,331.44 crore in the same quarter last year.

Net Interest Income (NII), a key measure of bank profitability, increased 3 percent to Rs 42,984.06 crore from Rs 41,619.54 crore a year ago, reflecting stable credit demand and a balanced funding mix. Asset quality continued to strengthen, with Gross Non-Performing Assets (NPA) improving sequentially to 1.73 percent from 1.83 percent, while Net NPA eased to 0.42 percent from 0.47 percent quarter-on-quarter.

However, provisions rose 19.9 percent to Rs 5,400 crore against Rs 4,506 crore, primarily due to prudent provisioning for potential credit risks. Operating profit declined 6.8 percent to Rs 27,311 crore compared with Rs 29,294 crore in the year-ago period, as higher expenses and lower treasury income impacted margins.

The bank also recognized additional one-time gains during the quarter, helping cushion profitability and maintain strong capital adequacy levels.