SBI Reports Record Q3 Net Profit of Rs 21,028 Crore, Driven by 24% Increase and 40% Rise in Operating Profit
State Bank of India (SBI) has announced a remarkable 24% year-on-year increase in its standalone net profit, reaching an all-time high of Rs 21,028 crore for the December quarter of FY26. This impressive growth is attributed to a steady rise in core income and positive recovery trends. On a consolidated basis, the bank reported a profit of Rs 21,317 crore, marking a 13.06% increase compared to the same period last year, as detailed in a recent regulatory filing.
Strong Growth in Net Interest Income
SBI’s standalone net interest income (NII) saw a significant rise of 9.04%, climbing to Rs 45,190 crore from Rs 41,446 crore in the previous year. This growth was bolstered by a robust 15.14% expansion in loans, despite a slight compression in the domestic net interest margin, which decreased by 0.03% to 3.12%. Additionally, the bank’s non-interest income surged by 15.65%, reaching Rs 8,404 crore during the quarter. However, total expenses also increased, rising to Rs 1,08,052 crore from Rs 1,04,917 crore in the same quarter of FY25. The bank’s net interest margin (NIM) stood at 2.99% for Q3 FY26, while the domestic NIM was recorded at 3.12%. Over the nine months ending December 2025, the domestic NIM averaged 3.08%.
Improved Asset Quality and Provisions
SBI reported an improvement in asset quality, with the gross non-performing assets (GNPA) ratio decreasing to 1.57% as of December 31, 2025, down from 1.73% at the end of September. The bank’s total provisions rose significantly to Rs 4,507 crore, compared to just Rs 911 crore in the same quarter last year. The provision coverage ratio (PCR), including additional provisions for unclassified assets (AUCA), was 92.37%, while the PCR excluding AUCA stood at 75.54%. The slippage ratio remained stable at 0.40%, and the credit cost was reported at 0.29%. These figures indicate a solid performance in managing asset quality and provisions.
Robust Deposit and Business Growth
During the October to December period, SBI experienced a deposit growth of 9.02%. The bank reported fresh slippages amounting to Rs 4,458 crore, which was higher than the Rs 3,823 crore reported in the same period last year. On the balance sheet front, SBI’s total business surpassed Rs 103 lakh crore, with deposits exceeding Rs 57 lakh crore and advances crossing Rs 46 lakh crore. The overall capital adequacy ratio stood at a healthy 14.04% as of December 31, 2025, with a core capital buffer of 10.99%. This strong capital position supports the bank’s ongoing growth and stability.
Digital Adoption and Future Outlook
SBI has seen a significant shift towards digital banking, with over 68% of savings bank accounts opened through its Yono platform in Q3. Furthermore, alternative channels accounted for nearly 98.6% of total transactions during the nine-month period. At a recent press conference, SBI Chairman C S Setty highlighted that a special dividend of Rs 2,200 crore from SBI Mutual Fund contributed to the profit growth during the quarter, alongside increased fee income, recoveries from written-off accounts, and net interest income. The bank’s strong performance and digital initiatives position it well for future growth in the competitive banking landscape.
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