Are State Bank of India latest results good or bad?

State Bank of India's latest financial results for Q2 FY26 present a mixed picture of operational achievements and challenges. The bank reported a net profit of ₹16,665.94 crores, which reflects a decline compared to both the previous quarter and the same quarter last year. This decrease is primarily attributed to a significant rise in provisions, which increased to ₹5,400.12 crores, impacting the bottom line despite a sequential growth in net interest income of 4.65% to ₹42,984.06 crores. The bank's interest earned reached ₹1,19,653.93 crores, indicating a healthy performance driven by strong advances growth. However, the net interest margin (NIM) compressed to 2.97%, down from 3.14% a year earlier, highlighting ongoing margin pressures in a competitive deposit environment. Additionally, the gross non-performing asset (NPA) ratio improved to 1.73%, the lowest in eight quarters, signaling a positive trend in asset quality. Despite these operational challenges, the bank's total income for the quarter stood at ₹1,39,572.69 crores, marking a sequential growth of 3.13% and an 8.08% increase year-on-year. The CASA ratio, however, declined to 39.63% from 40.03% a year ago, reflecting heightened competition for low-cost deposits. Overall, State Bank of India is navigating a complex operating environment characterized by margin pressures and elevated provisions while maintaining a focus on asset quality. The company saw an adjustment in its evaluation, reflecting the nuanced performance amidst these challenges.