SBI Q3 Results 2026: Profit Soars 24% to Record High

Introduction to SBI's Landmark Quarter

State Bank of India (SBI), the country's largest public sector lender, announced a landmark performance for the third quarter of the financial year 2026. The bank reported its highest-ever quarterly standalone net profit at ₹21,028 crore, marking a significant 24% year-on-year (YoY) increase. This robust performance was primarily driven by healthy loan growth across all segments and a consistent improvement in the bank's asset quality, reinforcing its dominant position in the Indian banking sector.

Profitability and Core Income Growth

The bank's profitability metrics showed exceptional strength. The standalone net profit of ₹21,028 crore for the quarter ending December 31, 2025, was a substantial jump from the ₹16,891 crore reported in the same period of the previous year. The operating profit, a key indicator of core operational efficiency before provisions, grew by an impressive 40% YoY to reach ₹32,862 crore. This surge highlights the bank's ability to generate strong earnings from its primary business activities.

Net Interest Income (NII), the difference between interest earned and interest expended, grew by a healthy 9% YoY to ₹45,190 crore. This growth was supported by a steady expansion in the loan book. The bank's domestic Net Interest Margin (NIM), a measure of profitability, stood at 3.12% for the quarter, indicating stable returns on its assets despite a competitive environment.

Sustained Improvement in Asset Quality

SBI continued its positive trend in asset quality management. The Gross Non-Performing Assets (GNPA) ratio saw a significant decline, improving to 1.57% as of December 2025. This represents a 50 basis point reduction from the previous year. The Net NPA ratio also improved, falling by 14 basis points to just 0.39%, one of the lowest in the industry. These figures underscore the bank's effective recovery mechanisms and prudent lending practices.

The Provision Coverage Ratio (PCR), including Assets Under Collection Account (AUCA), remained strong at 92.37%, providing a substantial buffer against potential loan losses. The slippage ratio, which measures the rate of new bad loans, was contained at a low 0.40% for the quarter, while the credit cost stood at 0.29%, reflecting minimal stress on the loan portfolio.

Key Financial Highlights: Q3 FY26 vs Q3 FY25

Broad-Based Balance Sheet Expansion

SBI's balance sheet achieved a new milestone, with total business crossing the ₹103 lakh crore mark. This was supported by strong growth in both deposits and advances. Total advances grew by 15% YoY to cross ₹46 lakh crore, fueled by strong demand across various sectors. Domestic advances, which form the core of the loan book, also grew by 15%.

The growth was broad-based. Retail advances rose by 16%, with all sub-segments like personal loans and home loans showing double-digit growth. SME advances expanded sharply by 21%, indicating strong support for small and medium enterprises. Corporate advances also recorded a healthy growth of 13%, signaling a rebound in corporate credit demand.

On the liabilities side, total deposits grew by 9% YoY to exceed ₹57 lakh crore. CASA (Current Account Savings Account) deposits rose by 9%, with the CASA ratio standing at a healthy 39.13%.

Capital Position and Digital Footprint

The bank's capital position remains comfortable, ensuring it is well-equipped for future growth. The Capital Adequacy Ratio (CAR) stood at 14.04% as of December 2025, well above the regulatory requirement. The Common Equity Tier-1 (CET-1) ratio was at 10.99%.

Digital adoption continues to be a key strategic focus. The bank's Yono platform played a crucial role, with over 68% of savings bank accounts being opened through it during the third quarter. Alternate channels, including digital platforms, accounted for nearly 98.6% of total transactions, highlighting a successful shift towards digital banking and improved operational efficiency.

Outlook and Conclusion

State Bank of India's Q3 FY26 results have set a high benchmark for the industry. The record-breaking profit, coupled with strong loan growth and improving asset quality, demonstrates the bank's robust fundamentals and operational excellence. With a strong capital base and a growing digital footprint, SBI is well-positioned to capitalize on the credit demand in the growing Indian economy. These results solidify investor confidence and underscore the bank's role as a pillar of the nation's financial system.