Country’s largest lender State Bank of India (SBI) on Saturday reported 24 per cent year-on-year (y-o-y) rise in Q3FY26 net profit at ₹21,028 crore, led by strong loan growth and stable asset quality.
SBI’s net interest income (NII) grew 9 per cent on year to ₹45,190 crore, while net interest margin stood at 2.99 per cent, up 2 basis points (bps) on quarter, and is expected to rise above 3 per cent in next quarter, said Chairman CS Setty.
The bank received a special dividend of ₹2,200 crore from its subsidiary SBI MF, and it intends to complete IPO process of the company before 2026 end, Setty said.
Core business
SBI’s gross advances grew 15 per cent y-o-y to ₹46.83 lakh crore in Q3, and the lender raised credit growth guidance for FY26 to 14-15 per cent from 12-13 per cent earlier. SBI has seen strong growth across retail, agriculture and MSME loans and has ₹7.9 lakh of corporate loans in pipeline.
Deposits rose 9 per cent y-o-y to ₹57.01 lakh crore, and share of low-cost deposits was stable at 39 per cent. Setty said due to intense competition to mobilise deposits among banks, room to cut deposit rates is low.
Stable asset quality
SBI’s fresh slippages stood at ₹4,458 crore in Q3, lower than ₹4,754 crore in Q2. Recoveries improved to ₹2,371 crore in Q3 and the bank expects ₹8,000 crore of recoveries in FY26.
Credit cost declined 4 basis points (bps) on quarter to 0.39 per cent in Q3. Loan loss provisions stood at ₹3,216 crore in Q3, lower than ₹4,132 crore a quarter ago.
Overall, the bank’s gross and net non-performing asset ratio fell 50 bps and 14 bps y-o-y to 1.57 per cent and 0.39 per cent in Q3, respectively. ENDS
Published on February 7, 2026
