State Bank of India Reports Strong Q2FY26 Growth with Advances Up 12.73% and Total Business Exceeding ₹100 Trillion

State Bank of India (SBI) announced significant financial results for the second quarter of fiscal year 2026 (Q2FY26). The bank reported a 12.73% year-on-year growth in total advances, which reached ₹44.2 lakh crore. This expansion was fueled by a 12.32% rise in domestic advances to ₹37.4 lakh crore and a 15.04% growth in overseas operations, particularly in the US and GIFT City.

Key drivers included a 14.09% surge in the retail personal loan segment, which now constitutes 42.6% of domestic advances, with home loans up 15.22% and auto loans up 9.64%. Agriculture loans grew by 14.23%, and Small and Medium Enterprise (SME) credit saw a strong 18.78% increase. Corporate advances also grew, though at a slower pace of 7.1%. The bank's total deposits reached ₹55.9 lakh crore, pushing its total business volume over ₹100 trillion.

Profitability improved with net profit rising 9.97% year-on-year to ₹20,160 crore, supported by higher non-interest income. The credit-to-deposit ratio stood at a healthy 69.82%, indicating efficient asset utilization. The bank highlighted stable asset quality, with gross non-performing assets (NPAs) remaining low across most retail product categories.

Impact: This strong performance indicates SBI's robust growth trajectory and efficient risk management, suggesting positive sentiment for the bank and potentially the broader Indian banking sector. Its ability to grow across diverse loan segments points to a healthy economic environment and strong credit demand. The bank's financial health and expansion are positive indicators for the Indian economy. Rating: 9/10

Explanation of Terms: Advances: Loans and other credit facilities extended by a bank to its customers. Deposits: Funds placed into a bank account by customers. Loan Book: The total amount of loans issued by a financial institution. Gross NPAs (Non-Performing Assets): Loans for which the principal or interest payments are overdue for a significant period (typically 90 days). Credit-to-Deposit Ratio: A measure of a bank's total loans relative to its total deposits, indicating how much of its deposit base is being used for lending. RAM (Retail, Agriculture, and MSME): Refers to the bank's focus on lending to individuals (retail), farming sector (agriculture), and Micro, Small, and Medium Enterprises (MSME).