A one-time gain from the sale of its investment in Yes Bank and consistent loan growth helped State Bank of India (SBI) record a 10% increase in standalone net profit for the quarter that ended in September. The bank's overall business for the quarter surpassed Rs 100 lakh crore.

Key Highlights

• State Bank of India’s Q2 net profit rose by ~10% to ₹20,160 crore, driven by stake-sale gains.
• The profit boost included approximately ₹4,593 crore from a stake sale in Yes Bank, while advances grew 12.7%.

The bank's independent net profit increased from Rs 18,331 crore to Rs 20,160 crore in the previous year. Non-interest revenue, which increased 30.4% year over year to Rs 19,919 crore thanks to a gain of Rs 4,593 crore from the partial sale of its Yes Bank stake, was the primary driver of the growth. Despite growing funding costs, operating profit increased 8.9% to Rs 31,904 crore, demonstrating strong core performance.

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As deposit costs increased throughout the industry, SBI's domestic net interest margin dropped 18 basis points to 3.1% from 3.3% in the same period previous year. With total advances rising by 12.7% to Rs 44.2 lakh crore, net interest revenue increased by 3.3% to Rs 42,984 crore. With SME loans up 18.8% and retail personal advances up 14.1%, retail, agriculture, and MSME lending continued to be the primary growth drivers.

With a 17.9% increase in current account balances, deposits increased 9.3% year over year to Rs 55.9 lakh crore. Stronger recoveries and more stringent credit monitoring led to an improvement in the bank's asset quality. The bank's asset quality was the finest in 20 years, according to CS Setty, chairman of the bank, who announced the figures. The net NPA ratio dropped to 0.4% while the gross NPA ratio dropped by 40 basis points to 1.7%.