The State Bank of India (SBI) has delivered a strong performance in the third quarter of FY26, posting its highest-ever quarterly profit while continuing to expand its balance sheet and improve asset quality. The bank’s overall business crossed ₹103 trillion during the quarter, with deposits exceeding ₹57 trillion and advances crossing ₹46 trillion, reflecting sustained growth across lending segments.
The bank reported a record net profit of ₹21,028 crore in Q3FY26, registering a year-on-year increase of about 24.5%. Operating profit also grew significantly, rising nearly 40% year-on-year to ₹32,862 crore, supported by steady income growth and improved operational efficiency. Net interest income increased by 9% year-on-year, while the bank maintained healthy margins, with domestic net interest margin standing at around 3.12% during the quarter.
SBI’s lending portfolio continued to expand at a strong pace, with total advances growing over 15% year-on-year. Retail, SME, and agriculture loans recorded robust growth, led by a more than 21% rise in SME lending and strong expansion in retail personal loans and agricultural credit. Corporate lending also grew steadily, highlighting broad-based credit demand across sectors. On the liability side, deposits rose about 9% year-on-year, while retail term deposits showed double-digit growth, strengthening the bank’s funding base.
Asset quality improved further during the quarter, with the gross NPA ratio declining to 1.57% and net NPA ratio improving to 0.39%. Provision coverage ratio remained strong at over 92% including AUCA, indicating adequate buffers against potential stress. Credit costs also stayed contained, reflecting stable risk management and recovery performance.
The bank maintained comfortable capital levels, with a capital adequacy ratio of about 14%, ensuring sufficient capacity to support future credit growth. Digital adoption also remained high, with more than two-thirds of savings accounts opened through digital channels such as YONO and nearly 99% of total transactions taking place through alternate digital channels.
Overall, SBI’s Q3FY26 results highlight strong profitability, steady credit growth, improving asset quality, and rising digital penetration, positioning the bank well for continued growth in the coming quarters.
