Mumbai | November 2025:
State Bank of India (SBI), the largest public sector lender in India, showed a 10 percent year-on-year (YOY) net profit increase in July-September (Q2 FY2025), and its net profit was 20160 crore with a one-time gain of 13000 crore due to the sale of its stake in the YES Bank.
Strong operating income, consistent credit growth and better quality of assets were some of the factors that made the bank have a stronger performance situation quarter to quarter and this indicates that the banking sector of India remains strong.
YES Bank Stake Sale Made Bigger Profits
In September 2025, SBI sold its 13.18 percent stake in YES Bank to the Japan-based Sumitomo Mitsui Banking Corporation (SMBC) at a price of ₹8,889 crore.
The given transaction led to a 1-time profit of 4593 crore that has contributed to the increasing Q2 profits of the lender.
This stake had been obtained in 2020 by SBI as part of a bailout to resuscitate YES Bank, and the sale is a major milestone of monetization in the bank.
Financial Highlights Quarterly Financial Highlights (Q2 FY2025)
| Metric | Q2 FY2025 | Q2 FY2024 | Change (YoY) |
| Net Profit | ₹20,160 crore | ₹18,250 crore | 10% |
| Operating Profit | ₹24,000 crore (approx.) | ₹22,500 crore | 6.7% |
| Net Interest Income (NII) | ₹39,500 crore | ₹38,000 crore | 4% |
| Gross NPA Ratio | 2.36% | 2.95% | Improved |
| Net NPA Ratio | 0.60% | 0.70% | Improved |
Note: Figures are rough estimates at the disclosure of the figures by the populace.
Asset quality and credit growth are high
The asset quality of SBI also improved as the Gross Non-Performing Assets (GNPA) reduced to 2.36% compared to 2.95% a year ago.
The Net NPA also decreased to 0.60, which represents the adoption of efficient loan recovery and sound lending policies.
The bank saw good growth in its retail, corporate and SME loan markets that were backed by robust credit growth and digital lending programs.
Management Commentary
SBI Chairman Dinesh Khara emphasized the point that the stake sale of YES Bank was a strategic divestment and meant to unlock value without jeopardizing the position of health of the capital.
We are financially firm and performing well. The cash involved in the sale of stakes by the YES Bank will also augment our capital adequacy as well as help us grow in the future, Khara stated.
Yes Bank Stake Sale: Strategic Sale
The investment in YES Bank by SBI was made in March 2020 when the bank was the first to lead a group of banks in bailing out the ailing private lender.
Then, SBI had injected 7250 crore in a 48 percent stake which was diluted subsequently when YES Bank issued new shares and capital.
The sale of the 13.18% stake to SMBC is a big milestone exit, which brings liquidity and realization of profits to SBI and gives the Japanese banking giant an opportunity to increase its presence in India.
Stock Market Reaction
After the outcome, SBI shares experienced modest movements in the BSE and NSE, where they were able to trade in the range of ₹865-875 levels throughout the day.
The analysts said that overall the results were close to the expectations and the one-time gain subsidized the slight pressure on the net interest margins.
Motilal Oswal and ICICI Securities brokerages did not change their buy ratings, stating that their balance sheet fundamentals, digital transformation, and stable return ratios.
Analyst Outlook
The analysts are of the view that SBI continues to have strong core performance, which is backed by:
- Improving asset quality
- Constant net interest margins (NIMs).
- Strong capital adequacy (CAR > 13%)
- Further increase in retail and SME lending.
The profit of the YES Bank divestment is likely to increase the total profits of SBI in FY2025, and SBI will have flexibility in deploying capital in the future.
Key Takeaways
- Net Profit: R20,160 crore (up 10% YoY)
- YES Bank Stake Sale: 13.18% to SMBC at 8,889 crore.
- One-Time Gain: 4593 crore to profit quarterly.
- Asset Quality: a better GNPA ratio and NNPA ratio.
- Prognosis: Stable margins, growth and development in digital, and robust credit growth.
Conclusion
The H1 performance of the State Bank of India in Q2 FY2025 supports its role as the pillar of the Indian banking industry.
The YES Bank stake sale provided a profit cushion that is one-time, but the true power is in the stable growth of SBI, its quality improvement in its assets, and its good performance.
With an improved credit cycle in India and the further evolution of digital banking, SBI seems to have a huge opportunity to grow in the upcoming FY2026 and beyond.
