The State Bank of India (SBI), the country’s largest public sector lender, is expected to report a modest decline in its standalone net profit for the second quarter of FY2025, despite healthy loan growth. Analysts attribute this to pressure on net interest margins (NIMs), which is likely to be partially offset by one-time gains from the recent stake sale in Yes Bank.
According to a Bloomberg analyst poll, SBI is projected to post a standalone net profit of approximately ₹17,523 crore for the July–September quarter, reflecting a year-on-year decline of over 4%. The bank’s net interest income (NII) is expected to remain flat, weighed down by narrowing margins amid rising deposit costs and competitive lending rates.
However, the bank’s decision to divest a 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over ₹8,889 crore is anticipated to provide a significant boost to its treasury income. The transaction, completed in September 2025, is part of a broader exit strategy by SBI and seven other Indian banks, who collectively held a 20% stake in Yes Bank.
The proceeds from the stake sale are expected to cushion the impact of margin compression and support the bank’s bottom line in Q2. SBI’s domestic NIM had already declined by 33 basis points to 3.02% in the June quarter, and further moderation is anticipated in the latest results.
Brokerages are also watching for updates on asset quality, loan growth, and credit costs. While SBI has maintained a strong loan book, analysts caution that rising interest rates and global uncertainties could affect future profitability.
The bank is scheduled to release its Q2 earnings report later this week. Investors and market watchers will be closely monitoring management commentary on future margin trends, credit demand, and capital deployment strategies.
