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SBI Q2 net profit drops 15% YoY to ?13,000 crore on margin compression.

Banking & Finance | Dated: 05 Nov 2025

The State Bank of India (**SBI**) reported a drop in its Profit After Tax (PAT) for the quarter ended September 2025 (Q2 FY26), falling by 15% year-on-year to **₹13,000 crore**. The decline was primarily attributed to **Net Interest Margin (NIM)** compression due to increased funding costs, aligning with analyst forecasts. Despite the softer profit figures, the bank reported strong **loan growth of 12%** YoY, driven by the retail segment, and an improvement in asset quality, with Gross Non-Performing Assets (GNPA) dropping to 2.45%.

🎯 Key Highlights:

  • SBI reported a 15% year-on-year decline in its Net Profit.
  • The net profit for Q2 FY26 stood at ?13,000 crore.
  • The bank reported a strong loan growth of 12% YoY and GNPA dropped to 2.45%.

💡 Other Important Facts:

  • The bank's asset quality showed sustained improvement, which is a positive sign.
  • NIM compression was largely anticipated by the market due to RBI actions.
  • The retail segment continues to drive the majority of the loan growth.

📚 Test Your Knowledge:

What was the main reason cited for the decline in SBI's Q2 net profit?

Correct Answer: NIM compression

🚀 Quick Recap:

About SBI Financials

  • (i) Net Profit – ?13,000 crore (ii) Loan Growth – 12% YoY
  • (iii) Asset Quality – GNPA at 2.45% (iv) Pressure Point – Rising cost of funds