India’s largest public sector bank, State Bank of India, published its financial results for the second quarter that ended in September 2021. The quarter (Q2 FY22) witnessed the highest jump in net profit till date for the banking major. The standalone PAT for SBI was recorded at Rs.7626 crores, the highest ever recorded profit in the bank’s history. The PAT jumped by an impressive 67% year-on-year (YoY) as the bottom line in Q2FY21 was reported at Rs.4574 crores. Sequentially, PAT rose by 17% compared to Rs.6504 crores reported last quarter. The growth in the net profit was due to enhanced asset quality figures, reduction in loan loss provisions, and credit costs.

It is noteworthy that SBI had made considerable provision in the past quarter towards an exceptional item costing Rs.7418 crores due to a change in the family pension rules. Though the bank had the option to amortise the expense over 5 years, it wrote it off in one lump sum. This had no impact on the bottom line that held strong.

The operating profit for SBI jumped 9.84% YoY to Rs.18,079 crores in Q2FY22 from Rs.16,460 crores in Q2FY21.

Meantime, the net interest income (NII) jumped 10.6% YoY to stand at Rs.31,184 crores, a mammoth figure that makes SBI the largest lender in India. During the quarter, the net interest margin, which is the difference between the interest income generated and the interest paid out to customers, increased by 16 bps YoY to stand at 3.50%. This speaks volumes about the profitability of the business.

SBI also reduced its gross Non-Performing Assets (NPAs) which stood at 4.90% in Q2FY22. This is lower compared to the 5.32% in the last quarter and 5.28% in Q2FY21. The NPA ratio, on the other hand, stood at 1.52% for Q2FY22 compared to 1.77% in Q1FY22.

The bank’s personal retail advances increased 15.17% YoY and foreign office advances increased 16.18% YoY. Domestic advances, on the other hand, grew 4.61% YoY. These grew SBI’s gross advances by 6.17% YoY.

The deposits of the bank increased by 10% YoY. Current account deposits increased 19.2% YoY and savings accounts increased by 10.55% YoY – a sign of the probable recovery in the economy and confidence of the investors in the turnaround.

On Wednesday, 3rd November 2021, when the markets closed, SBI’s shares closed at Rs.527.62 at the NSE, after a jump of 1.14% on intraday basis. On 21st May 2021, SBI had declared a final dividend of Rs.4 per share for the last financial year.

SBI Q2 Results – Hits

  • 67% YoY and 17% QoQ jump in the net profit figures. The profit was recorded at Rs.7626 crores in Q2FY22 compared to Rs.4574 crores in Q2FY21 and Rs.6504 crores in Q1FY22.
  • 9.84% YoY increase in the operating profit, from Rs.16,460 crores to Rs.18,079 crores.
  • 10.6% YoY increase in the net interest income which was recorded at Rs.31,184 crores. 
  • Net interest margin grew by 16 basis points on a yearly basis to stand at 3.50%.
  • Gross NPAs reduced to 4.90% and the NPA ratio reduced by 25 bps sequentially, from 1.77% to 1.52%.
  • 10% YoY increase in bank deposits. Current account deposits grew 19.2% YoY and savings accounts by 10.55% YoY.

The gross advances grew by 6.17% YoY. The segment wise growth in advances, on the other hand, are as follows –

  • Personal retail advances – 15.17% YoY growth
  • Foreign office advances – 16.18% YoY growth
  • Domestic advances – 4.61% YoY
  • The loss provision for loans reduced considerably by 55% YoY, from Rs.5619 crores to Rs.2699 crores.
  • Slippages improved considerably and stood at 0.66%. This is a considerable improvement from 2.47% which was recorded in the last quarter.
  • Home loans, contributing to 24% of the bank’s domestic advances, grew 10.74% YoY.
  • Credit cost has reduced by 51 bps YoY to stand at 0.43%.
  • Cost to income ratio reduced by 106 bps YoY to stand at 54.10%


  • Non-interest income reduced by 3.7% YoY, from Rs.8527 crores in Q2FY21 to Rs.8207 crores in Q2FY22
  • 3.91% YoY fall in domestic corporate advances which stood at Rs.7.56 lakh crores in Q2FY22

Other things to know about SBI Results Q2 FY22

Here are some other important aspects of State Bank of India’s financial performance –

  • Till 3rd November 2021, on a YTD basis, State Bank of India’s stock has increased by 86.83% outperforming both the Nifty Bank and Nifty 50 indices which gave a return of only 27.90% and 27.61% respectively.
  • Over the last one year, SBI’s shares have rallied 154.95%
  • The Provision Coverage Ratio (PCR) was 87.68% for the quarter 
  • The Capital Adequacy Ratio (CAR) was 13.35% even though the first half of the profit was excluded