SBI Achieves Record Quarterly Profit with 24% Growth in Q3 FY26
The State Bank of India (SBI) has announced a historic standalone net profit of Rs 21,028 crore for the third quarter of the 2025-26 financial year, marking a substantial 24% increase compared to the same period last year. This all-time high performance underscores the bank's steady growth in core income and positive recovery trends across its operations.
Consolidated Performance and Income Highlights
On a consolidated basis, the state-owned lender reported a profit of Rs 21,317 crore, reflecting a 13.06% rise year-on-year, as confirmed by regulatory filings. The bank's standalone net interest income (NII) grew by 9.04% to reach Rs 45,190 crore, up from Rs 41,446 crore in the corresponding quarter of the previous fiscal year.
This growth was primarily fueled by a robust 15.14% expansion in loan disbursements, even as the domestic net interest margin experienced a slight compression of 0.03%, settling at 3.12%. Non-interest income also saw a significant boost, increasing by 15.65% to Rs 8,404 crore during the quarter.
Expenses, Margins, and Deposit Growth
Total expenses for the quarter rose to Rs 1,08,052 crore, compared to Rs 1,04,917 crore in Q3 FY25. The bank's overall net interest margin (NIM) was recorded at 2.99% for Q3 FY26, while the domestic NIM stood at 3.12%. For the nine-month period ending December 2025, the domestic NIM averaged 3.08%.
Deposit growth remained healthy at 9.02% during the October–December period. However, fresh slippages increased to Rs 4,458 crore, up from Rs 3,823 crore in the year-ago quarter.
Asset Quality and Provisioning Improvements
On the asset quality front, SBI demonstrated notable progress. The gross non-performing assets (GNPA) ratio improved to 1.57% as of December 31, 2025, down from 1.73% at the end of September. Total provisions for the quarter rose to Rs 4,507 crore, compared to Rs 911 crore in the same period last year.
The provision coverage ratio (PCR), including AUCA, stood at a strong 92.37%, while PCR excluding AUCA was 75.54%. The slippage ratio remained contained at 0.40%, and credit cost was reported at 0.29%.
Balance Sheet Strength and Capital Adequacy
SBI's total business crossed the significant milestone of Rs 103 lakh crore. Deposits exceeded Rs 57 lakh crore, while advances surpassed Rs 46 lakh crore. The bank's overall capital adequacy ratio was robust at 14.04% as of December 31, 2025, with a core capital buffer of 10.99%.
Digital Adoption and Leadership Insights
Digital adoption continued to be a key strength for SBI, with more than 68% of savings bank accounts opened through the Yono platform in Q3. Alternate channels accounted for nearly 98.6% of total transactions during the nine-month period.
At a 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. He also noted that higher fee income, recoveries from written-off accounts, and net interest income played crucial roles in driving the record performance.
