The State Bank of India (SBI), the country’s largest public sector lender, reported a 10% jump in net profit for the second quarter (Q2) of FY25, reaching ₹20,160 crore, compared to ₹18,331 crore in the same quarter last year. The growth was supported by steady loan demand, improved asset quality, and a one-time gain from the sale of its stake in Yes Bank.
SBI’s total income for the quarter climbed to ₹1.34 lakh crore, up from ₹1.29 lakh crore a year earlier. The bank’s gross non-performing assets (NPA) ratio improved to 1.73%, from 2.13% in the previous year, while net NPA fell to 0.42%, indicating stronger credit discipline and recovery efforts.
On the business front, advances grew by 12.7%, backed by strong performance in retail, SME, and corporate lending, whereas deposits rose by 9.3% year-on-year. The bank’s domestic net interest margin (NIM) stood at 3.09%, slightly lower than 3.27% a year ago, but higher sequentially, showing gradual margin recovery.
SBI’s management highlighted that the profit growth reflects the bank’s financial resilience and its ability to maintain healthy asset quality amid a changing interest rate environment. The improvement in NPAs and consistent business expansion suggest that India’s largest lender remains well-positioned to sustain momentum in the coming quarters.
Market analysts view the results positively, noting that SBI’s strong loan growth, low credit costs, and stable asset quality could drive further gains in profitability.
