For the third quarter of FY26, State Bank of India recorded a record standalone quarterly profit of ₹21,028 crore, a 24.5% rise over the previous year. Strong core revenue, better asset quality, and a special dividend from its asset management division as it gets ready for an IPO were the main drivers of the growth.
SBI Q3 Results: Following the release of its highest-ever standalone quarterly earnings for the December quarter of FY26, the share price of India’s largest lender, State Bank of India (SBI), surged 5.5% to reach a new high of ₹1,125 on Monday, February 9.
From its 52-week low of ₹679.65 in March 2025, it has now risen more than 65%.
Compared to the same quarter last year, when its standalone net profit was ₹16,891.44 crore, the public sector banking giant reported a 24.5% year-over-year increase to ₹21,028 crore in Q3 FY26. Consistent core income growth, a notable increase in asset quality, and a one-time boost from its IPO-bound asset management business all contributed to the impressive performance.
A special dividend from SBI Mutual Fund was a major factor in increasing profitability on its own. One of the reasons for the dramatic increase in profits, according to Chairman C S Setty, was the ₹2,200 crore special dividend given by the asset management company, which is getting ready for an IPO. As a result, SBI’s quarterly profit increased by 24%, setting a new record.
Key Points: Asset quality and operating performance
Throughout the quarter, SBI’s operational indicators held up well. From ₹1,28,467.39 crore to ₹1,40,914.65 crore, the total income increased 9.7% year over year. As a result of improved operating leverage, net interest income (NII) rose 9% annually to ₹45,190 crore, while operating profit jumped 39.54% to ₹32,862 crore.
For the most part, margins were steady. In Q3 of FY26, the domestic net interest margin (NIM) decreased slightly by 3 basis points to 3.12%, while the whole-bank NIM remained at 2.99%.
The quality of the assets kept getting significantly better. Net non-performing assets (NPAs) decreased 15.74% to ₹18,012 crore, while gross non-performing assets (GNPA) decreased 12.71% to ₹73,637 crore. The GNPA ratio reached its highest level in 20 years on December 31, 2025, rising from 1.73% in September to 1.57%. The total amount of provisions for the quarter was ₹4,507 crore, as opposed to ₹911 crore during the same period last year. The amount of fresh slippages was ₹4,458 crore, which was more than the ₹3,823 crore recorded in the same quarter previous year.
SBI’s total net profit for the third quarter of FY26 was ₹21,876.04 crore, up 14.08% year over year from ₹19,175.35 crore in the same quarter the previous year.
Management Commentary: Prospects for loan growth are improved
Speaking about the forecast, C S Setty stated that SBI’s loan growth guidance for FY26 has been revised upward from 12% to 14% to 13% to 15%. He cited a recovery in corporate lending and continued momentum in the retail sector.
After revealing the findings, Setty told reporters, “I see many areas where SBI is well positioned to take advantage of the emerging scenario.”
Setty claimed that a wide range of small firms will gain from trade agreements in addition to big corporations. SBI’s entire loan book was ₹46.8 trillion as of December 31, and during the October–December period, deposits increased 9.02% annually. At 72%, the credit-deposit ratio was still manageable and had opportunity to increase.
He did, however, highlight the difficulties posed by a structural change in household savings brought on by increased financialization. SBI’s corporate credit pipeline, which includes approved but unused facilities, was valued at ₹7.9 trillion, according to Deputy Managing Director Ashwini Kumar Tewari.
Following the simplification of the GST, economic activity has significantly increased, leading to a rise in working capital utilization. Long-term loans are being taken out in a number of industries, and there is good pipeline visibility,” Setty stated.
As for the future, management stated that while geopolitical concerns, uncertainty in global trade, market volatility, and fluctuations in commodity prices continue to be major threats, banks must increase resources at competitive rates, with deeper corporate debt markets aiding.
SBI Q3: Is it worth purchasing?
Senior Research Analyst Seema Srivastava of SMC Global Securities stated:
“State Bank of India demonstrated the sustainability of its profits recovery and balance-sheet strength in Q3 FY26 with a robust and well-rounded performance. Healthy operating leverage, strict cost control, and a significant 39.5% YoY increase in operating profit were the main drivers of the net profit’s 24.5% YoY growth to ₹21,028 crore.
“With strong traction in SME and agriculture, SBI’s credit growth remained broad-based and ahead of the system,” she continued. Additionally, Srivastava emphasized robust provisioning buffers, resilient margins, improved asset quality, and a comfortable capital adequacy position, all of which strengthened trust in the bank’s balance sheet strength and earnings stability.
On Friday, February 6, the PSU stock closed at ₹1,066.40, down 0.65%. It has increased by 44% over the previous year, 12% over the last three months, and 7% over the last month.
Frequently Asked Questions (FAQs)
Q1. What was SBI’s net profit in Q3 FY26?
State Bank of India reported a record standalone net profit of ₹21,028 crore in Q3 FY26, marking a 24.5% year-on-year increase compared to the same quarter last year.
Q2. Why did SBI shares jump 5.5% after Q3 results?
SBI shares surged 5.5% to a record high of ₹1,125 after the bank announced its highest-ever quarterly profit, supported by strong core income, improved asset quality, and a one-time special dividend from SBI Mutual Fund.
Q3. How has SBI’s share price performed recently?
SBI’s share price has risen over 65% from its 52-week low of ₹679.65 in March 2025. Over the past year, the stock is up 44%, with gains of 12% in three months and 7% in one month.
Q4. What role did SBI Mutual Fund’s special dividend play in Q3 profit?
A ₹2,200 crore special dividend from SBI Mutual Fund, which is preparing for an IPO, significantly boosted SBI’s profitability and was a key contributor to its record quarterly earnings.
Q5. How did SBI’s operating performance fare in Q3 FY26?
Total income rose 9.7% YoY to ₹1,40,914.65 crore
Net Interest Income (NII) increased 9% YoY to ₹45,190 crore
Operating profit surged 39.54% YoY to ₹32,862 crore
Q6. What happened to SBI’s margins in Q3 FY26?
Margins remained largely stable. Domestic NIM slipped marginally by 3 basis points to 3.12%, while overall bank NIM stood at 2.99%.
Q7. How did SBI’s asset quality improve during the quarter?
Gross NPAs declined 12.71% to ₹73,637 crore
Net NPAs fell 15.74% to ₹18,012 crore
GNPA ratio improved to 1.57%, the lowest level in nearly 20 years
Q8. What were SBI’s provisions and slippages in Q3 FY26?
Total provisions rose to ₹4,507 crore, compared to ₹911 crore a year ago. Fresh slippages stood at ₹4,458 crore, slightly higher than last year’s ₹3,823 crore.
Q9. What is SBI’s outlook on loan growth for FY26?
SBI has revised its loan growth guidance upward to 13–15%, driven by a recovery in corporate lending and sustained momentum in retail, SME, and agriculture segments.
Q10. What is the current status of SBI’s deposits and loan book?
As of December 31, 2025:
Total loan book: ₹46.8 trillion
Deposit growth: 9.02% YoY
Credit-deposit ratio: ~72%, indicating comfortable liquidity
Q11. What risks did SBI management highlight going forward?
Management cited geopolitical tensions, global trade uncertainty, market volatility, and commodity price fluctuations as key risks, while emphasizing the need for competitive funding and deeper corporate debt markets.
Q12. Is SBI stock worth buying after Q3 FY26 results?
According to market experts, SBI’s strong earnings growth, improved asset quality, healthy provisioning buffers, stable margins, and solid capital position support a positive long-term outlook, though investors should remain mindful of market volatility.
