State Bank of India (SBI) reported a notable improvement in asset quality metrics for the quarter ended September, with fresh slippages declining sharply and slippage ratio moderating further.
The lender recorded fresh slippages of ₹4,800 crore in Q2FY26, lower than ₹7,900 crore reported in the previous quarter. The slippage ratio improved by 6 bps year-on-year and stands at 0.45%, reflecting continued improvement in credit behaviour and lower stress accretion.
Asset quality strengthened sequentially as Gross NPA reduced to 1.73% from 1.83% in Q1, while Net NPA declined to 0.42% from 0.47%. The improvement highlights disciplined underwriting and controlled loan-loss formation across key loan segments.
The lender also delivered a resilient operating performance during the quarter. Net interest income (NII) rose 3% YoY to ₹42,985 crore, beating the CNBC-TV18 poll estimate of ₹40,766 crore, supported by steady loan growth and interest income traction. Net profit grew 10% YoY to ₹20,160 crore, higher than the ₹17,048 crore forecast.
Shares of SBI were volatile post results and last traded little changed near ₹949.6.
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