SBI Q3 Results: India’s largest lender State Bank of India (SBI) will be in focus on Monday, February 9, after reporting its highest-ever standalone quarterly profit for the December quarter of FY26.
The public sector banking major posted a 24.5% year-on-year jump in standalone net profit to ₹21,028 crore in Q3 FY26, compared with ₹16,891.44 crore in the same quarter last year. The strong performance was supported by steady core income growth, a sharp improvement in asset quality and a one-time boost from its IPO-bound asset management arm.
On a standalone basis, a special dividend from SBI Mutual Fund played a key role in lifting profitability. The asset management subsidiary, which is preparing for an initial public offering, paid a ₹2,200 crore special dividend, which Chairman CS Setty cited as one of the factors behind the sharp rise in profits. This helped the bank report a 24% jump in quarterly profit, marking an all-time high for SBI.
Key Highlights: Operating performance, asset quality
SBI’s operating metrics remained healthy during the quarter. Total income rose 9.7% year-on-year to ₹1,40,914.65 crore, compared with ₹1,28,467.39 crore in the year-ago period. Net interest income (NII) increased 9% year-on-year to ₹45,190 crore, while operating profit surged 39.54% to ₹Rs 32,862 crore, reflecting better operating leverage.
Margins were largely stable. The whole-bank net interest margin (NIM) for Q3 FY26 stood at 2.99%, while domestic NIM declined marginally by 3 basis points to 3.12%.
Asset quality continued to improve meaningfully. Gross non-performing assets (GNPA) declined 12.71% year-on-year to ₹73,637 crore, while net NPAs fell 15.74% to ₹18,012 crores. The GNPA ratio improved to 1.57% as of December 31, 2025, from 1.73% in September, marking the best level in two decades. Overall provisions for the quarter stood at ₹4,507 crore, compared with ₹911 crore in the year-ago period. Fresh slippages came in at ₹4,458 crore, higher than ₹3,823 crore reported in the corresponding quarter last year.
On a consolidated basis, SBI reported a 14.08% year-on-year increase in net profit to ₹21,876.04 crore for Q3 FY26, compared with ₹19,175.35 crore in the same quarter last year.
Management Commentary – Loan growth outlook raised
Commenting on the outlook, Setty announced an upward revision in SBI’s loan growth guidance for FY26 to 13%–15%, from the earlier 12%–14%, citing a rebound in corporate lending and sustained momentum in the retail segment.
“I see many areas where SBI is well positioned to take advantage of the emerging scenario,” CS Setty told reporters after announcing the results.
Setty added that trade deals would benefit not just large corporates but also a wide base of small businesses. As of December 31, SBI’s total loan book stood at ₹46.8 trillion, while deposits grew 9.02% year-on-year during the October–December period. The bank’s credit-deposit ratio remained comfortable at 72%, providing headroom for further growth.
However, Setty flagged challenges arising from a structural shift in household savings, with increasing financialisation diverting flows away from traditional bank deposits. His deputy and Managing Director Ashwini Kumar Tewari said SBI has a robust corporate loan pipeline, including sanctioned but unutilised facilities, which stood at ₹7.9 trillion as of December 31.
“Economic activity has really picked up after GST rationalization, resulting in working capital utilization. We are seeing various sectors where long loans are being drawn and a good pipeline visibility is there,” Setty said.
Looking ahead, management said banks would need to adopt strategies to raise resources at competitive costs to meet rising credit demand, adding that deeper corporate debt markets would help.
Setty also identified geopolitical tensions, global trade uncertainties, financial market volatility and commodity price fluctuations as key risks, while stressing that SBI is not avoiding any specific sector or turning overly cautious.
The PSU stock ended 0.65% lower at ₹1,066.40 on Friday, February 6. It has gained 44% in last 1 year, 12% in past 3 months and 7% in last 1 month.
