Mumbai: State Bank of India (SBI), the country’s largest lender, reported a robust financial performance for the third quarter of FY26, with standalone net profit rising 24.5% year-on-year to ₹21,028 crore. The strong showing was supported by steady core income growth, disciplined cost management, and a sharp improvement in asset quality.
The results were approved by the Central Board of Directors of SBI at its meeting held today.
Q3 FY26 Standalone Financial Highlights
For the quarter ended December 31, 2025, SBI delivered solid growth across key parameters:
- Net Profit: ₹21,028 crore (up 24.5% YoY)
- Net Interest Income (NII): ₹41,497 crore (up 5.4% YoY)
- Net Interest Margin (NIM): 3.36%
- Operating Profit: ₹32,862 crore (up 16.6% YoY)
- Return on Assets (RoA): 1.19% (annualised)
- Earnings Per Share (EPS): ₹22.78
Asset Quality Improves to Best Levels in Years
Asset quality remained a key highlight of the quarter:
- Gross NPA Ratio: Declined to 2.15% from 2.42% YoY
- Net NPA Ratio: Improved to 0.39% from 0.53%
- Provision Coverage Ratio (PCR): Strengthened to 75.54%
The sustained reduction in slippages and low credit cost reflect SBI’s effective recovery mechanisms and prudent risk management.
Strong Capital Position Supports Future Growth
SBI’s balance sheet remains well-capitalised:
- Capital Adequacy Ratio (CRAR): 14.05%
- CET-1 Ratio: 10.99%
The strong capital base provides ample headroom to support credit growth and withstand macroeconomic volatility.
Nine-Month FY26 Performance Remains Robust
For the nine months ended December 31, 2025, SBI reported:
- Net Profit: ₹60,348 crore
- Net Interest Income: ₹1,25,117 crore
- Operating Profit: ₹90,718 crore
Consolidated Results Reflect Group-Wide Strength
On a consolidated basis, the SBI Group continued its strong momentum:
- Q3 FY26 Net Profit: ₹21,317 crore (up 21.1% YoY)
- Nine-Month Net Profit: ₹63,656 crore
Loan and Deposit Growth Remain Healthy
SBI reported strong business growth during the quarter:
- Domestic loan growth: 15.6% YoY
- Corporate loan growth: 13.4% YoY
- Deposit growth: 9% YoY, with total deposits exceeding ₹57 lakh crore
- Credit-to-Deposit Ratio: 81%, the highest since FY16
Key Corporate Actions During FY26
- YES Bank stake divestment: Sold 13.18% stake in September 2025, generating an exceptional net profit of ₹3,026.57 crore, transferred to capital reserve
- SBI General Insurance: Increased stake to 73.89% by acquiring an additional 4.925%
- Capital raising: Successfully raised ₹25,000 crore through QIP/FPO in July 2025
Management Outlook and Guidance
SBI’s management expressed confidence in sustaining profitability and asset quality. The bank revised its FY26 domestic loan growth guidance upward to 13–15% and expects to maintain NIM above 3%. A healthy corporate loan pipeline of nearly ₹7.9 trillion further supports growth visibility.
Outlook
SBI’s Q3 FY26 performance reinforces its position as the backbone of India’s banking system. With strong profitability, improving asset quality, healthy credit growth, and a fortified balance sheet, the bank is well-positioned to support India’s economic expansion.
About State Bank of India
State Bank of India is India’s largest public sector bank and a Fortune 500 company, serving over 50 crore customers through a vast domestic and international network. With a strong focus on digital banking, financial inclusion, and sustainable growth, SBI plays a pivotal role in India’s financial ecosystem.
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