State Bank of India (SBI) delivered a record-breaking performance in the December quarter, reporting a 24.5% year-on-year jump in standalone profit to ₹21,028.15 crore, compared with ₹16,891.44 crore in the same quarter last year. This marks SBI’s highest-ever quarterly net profit, reaffirming its position as India’s most systemically important bank.
Despite pressure on margins, the bank’s scale, credit growth, and asset quality improvement powered earnings to a historic high, even as markets reacted cautiously.
What Do SBI Q3FY26 Results Reveal About Core Growth?
SBI’s total standalone income rose 9.7% YoY to ₹1,40,914.65 crore, up from ₹1,28,467.39 crore in the corresponding quarter last year. The rise was driven by steady loan growth and stable interest income, while operating profit surged sharply.
Net interest income (NII) increased 9% YoY to ₹45,190 crore, and operating profit jumped 39.54% YoY to ₹32,862 crore, highlighting strong operating leverage. However, net interest margins (NIMs) showed mild compression, reflecting the broader banking sector trend.
Why Did NIM Decline Even With Rising NII?
SBI’s whole-bank NIM stood at 2.99%, while domestic NIM declined by 3 basis points to 3.12% in Q3FY26. This margin pressure stems from higher deposit costs, intense competition for CASA balances, and tighter liquidity conditions across the banking system.
While margins softened, the impact was offset by volume-led growth, which kept profitability on an upward trajectory.
How Big Is SBI’s Balance Sheet Expansion Now?
SBI crossed major balance-sheet milestones during the quarter. Deposits exceeded ₹57 trillion, while advances crossed ₹46 trillion, underlining the bank’s dominant market share.
Whole-bank advances rose 15.14% YoY, with domestic advances growing 15.44% YoY. Growth remained diversified rather than concentrated, reducing risk concentration concerns.
Domestic corporate advances increased 13.37% YoY to ₹13.33 trillion, while domestic retail personal loans rose 14.95% YoY to ₹16.63 trillion, indicating steady demand from both businesses and households.
SBI Q3FY26 Key Numbers at a Glance
| Indicator | Q3FY26 | YoY Change |
| Standalone Net Profit | ₹21,028.15 crore | +24.5% |
| Total Income | ₹1,40,914.65 crore | +9.7% |
| Net Interest Income | ₹45,190 crore | +9.0% |
| Operating Profit | ₹32,862 crore | +39.54% |
| Whole Bank NIM | 2.99% | Lower |
| Loan Loss Provisions | ₹3,216 crore | +39.51% |
| Gross Advances | ₹46.83 trillion | +15.14% |
What Do Asset Quality Trends Indicate?
Asset quality continued to improve in Q3FY26. Gross NPAs declined 12.71% YoY to ₹73,637 crore, while net NPAs dropped 15.74% YoY to ₹18,012 crore.
At the same time, loan loss provisions rose 39.51% YoY to ₹3,216 crore, reflecting SBI’s cautious stance amid rapid credit expansion. This balance between growth and risk control strengthens long-term earnings visibility.
What’s Happening With CASA and Deposits?
SBI’s CASA ratio declined marginally by 7 basis points YoY to 39.13%, mirroring industry-wide pressure on low-cost deposits. While CASA moderation impacts margins, SBI’s deposit franchise remains one of the strongest in the Indian banking system.
How Did Consolidated Results Perform?
On a consolidated basis, SBI reported a 14.08% YoY rise in profit to ₹21,876.04 crore in Q3FY26, compared with ₹19,175.35 crore last year. Total consolidated income increased 10.60% YoY to ₹1,85,648.33 crore, supported by subsidiary performance.
How Did the Market React to SBI Q3 Results?
Despite record earnings, SBI shares fell 0.65% to close at ₹1,066.40 on the BSE on Friday, February 6. The muted reaction suggests that strong results were largely priced in, with investors now focusing on margin sustainability and deposit trends.
What Should Investors and Market Learners Take Away?
SBI’s Q3FY26 results highlight a volume-driven earnings cycle, where credit growth and asset quality improvements are compensating for margin pressure. If deposit costs stabilise and NIMs hold near current levels, SBI’s earnings momentum could remain resilient in the coming quarters.
FAQs: SBI Q3 Results
What were SBI’s standalone net profit and total income in Q3FY26?
SBI reported a standalone net profit of ₹21,028.15 crore in Q3FY26, up 24.5% YoY, and total income of ₹1,40,914.65 crore, up 9.7% YoY.
Why is SBI’s Q3FY26 profit considered a record?
The ₹21,028.15 crore figure is SBI’s highest ever quarterly net profit since the bank’s inception, driven by strong loan growth and operating performance.
How did SBI’s net interest income (NII) perform in Q3FY26?
SBI’s Net Interest Income (NII) increased by 9% YoY to ₹45,190 crore in Q3FY26, reflecting continued growth in core banking income.
What is NIM and why did SBI’s NIM slip?
NIM (Net Interest Margin) measures the difference between interest earned and interest paid. SBI’s whole-bank NIM stood at 2.99%, while domestic NIM was 3.12%, both slightly lower due to rising deposit costs and competitive pricing.
Did SBI’s advances and deposits grow in Q3FY26?
Yes. Deposits crossed ₹57 trillion and advances crossed ₹46 trillion. Advances grew 15.14% YoY, while domestic advances increased 15.44% YoY.
How did asset quality change in SBI’s Q3 results?
Gross NPAs declined by 12.71% YoY to ₹73,637 crore, and Net NPAs fell 15.74% YoY to ₹18,012 crore, indicating improved asset quality.
What were SBI’s loan loss provisions in Q3FY26?
Loan loss provisions rose 39.51% YoY to ₹3,216 crore in Q3FY26, reflecting cautious provisioning amid growth.
What is SBI’s CASA ratio and why does it matter?
SBI’s CASA ratio declined to 39.13% (down 7 bps YoY). CASA (Current Account Savings Account) ratio is a key measure of low-cost funding; a decline may put pressure on margins.
How did SBI perform on a consolidated basis in Q3FY26?
On a consolidated basis, SBI reported a 14.08% YoY rise in profit to ₹21,876.04 crore, while total consolidated income rose 10.60% YoY to ₹1,85,648.33 crore.
Why did SBI’s share price fall despite strong results?
SBI’s share price fell 0.65% to ₹1,066.40 on the BSE, likely because markets focused on margin pressure and deposit cost concerns rather than headline profit numbers.
What role does NII play in SBI’s overall performance?
NII is a major contributor to SBI’s earnings because it reflects earnings from core lending and deposit activities. A rise in NII helps profitability even if margins slightly compress.
What does the growth in retail and corporate advances indicate?
Retail advances grew 14.95% YoY to ₹16.63 trillion, and corporate advances rose 13.37% YoY to ₹13.33 trillion, indicating balanced credit growth across segments.
How can SBI’s investors interpret NIM trends in Q3FY26?
Investors typically view stable or rising NIMs as positive. SBI’s slight NIM slip suggests competitive pressures, but the overall loan growth and profit expansion remain strong.
What should market learners focus on after SBI’s Q3 results?
Key focus areas include credit growth sustainability, NII trends, margin outlook, asset quality, and CASA stability, as these drive future earnings momentum.