State Bank of India's Q2 FY26 performance driven by credit growth

State Bank of India (SBI) announced its Q2 FY26 results, highlighting significant achievements including being a ₹100 trillion bank for the first time. The bank's domestic NIMs improved by 7 basis points quarter-on-quarter to 3.09%, primarily due to the repricing of deposits. SBI also successfully raised ₹25,000 crores in equity capital through a qualified institutional placement, which was oversubscribed four and a half times.

Credit growth for the first six months stood at 3.88%, with an annualized rate of 12%. The bank expects to disburse ₹3,07,000 crores in the remaining five and a half months to meet its 12% target. Recovery from written-off accounts was ₹2,483 crores, with recovery rates expected to be around 8%. The bank also emphasized its focus on strengthening its collection mechanism to mitigate the impact of new ECL guidelines.

SBI's strategic anchors include brand trust, institutionalization at scale, fair outcomes for all stakeholders, and a strong liability franchise, with a CASA ratio of 39.63%. The bank projects a long-term NIM above 3% and is confident in achieving a 14%-15% growth stability in home loans.