State Bank of India (SBI) Q3 FY26 Earnings Review: Record Profitability & Robust Asset Quality

Executive Summary State Bank of India (SBI) delivered a stellar performance for the quarter ending December 31, 2025, reporting its highest-ever quarterly profit. Key Financial Highlights Record Bottom Line: Standalone net profit surged 24.49% YoY to ₹21,028 crore, significantly surpassing market consensus. This was underpinned by a robust 39.54% YoY jump in Operating Profit to ₹32,862 crore. Net Interest Income (NII): NII grew 9.04% YoY to ₹45,190 crore. Domestic Net Interest Margin (NIM) remained healthy at 3.12%, while the Whole Bank NIM stood at 2.99%. Balance Sheet Milestones: Total business surpassed the historic ₹103 lakh crore mark. Total deposits grew 9.02% YoY to ₹57.01 lakh crore, maintaining a healthy CASA ratio of 39.13%. Credit Growth & Portfolio Diversification SBI demonstrated broad-based lending momentum, with Whole Bank Advances growing 15.14% YoY to ₹46.83 lakh crore, prompting an upward revision in FY26 credit growth guidance to 13–15%. Retail Leadership: Retail advances expanded 16.51%, driven by sustained demand in home loans (+14.65%) and personal loans (+14.95%). SME & Agri Focus: SME advances recorded exceptional growth of 21.02%, while agricultural loans grew 16.56%. Corporate Demand: Corporate advances increased by 13.37%, reflecting a revival in capital expenditure cycles. Asset Quality & Capital Adequacy Asset quality metrics showed significant improvement, reflecting prudent risk management and superior underwriting standards. NPA Ratios: The Gross NPA ratio improved by 50 bps YoY to 1.57%, while the Net NPA ratio declined 14 bps to 0.39%. Provisioning: The Provision Coverage Ratio (PCR) strengthened to 92.37%. The slippage ratio was contained at 0.40%, with credit costs low at 0.29%. Capital Position: The Capital Adequacy Ratio (CAR) improved to 14.04%, providing ample headroom for future asset expansion.