The country’s largest public sector bank, State Bank of India (SBI) on Saturday declared its results for the third quarter of financial year 2026 (Q3FY26). The bank has recorded its highest ever quarterly standalone profit, meeting market expectations. The bank’s balance sheet has become stronger due to higher provisioning buffer and increase in interest income.
Record breaking profits and increase in interest income
SBI has reported a standalone net profit of ₹21,028 crore in the December quarter, the highest ever in the bank’s history. At the same time, the bank’s profit on consolidated basis has increased by 13.06 percent to ₹ 21,317 crore.
Net interest income (NII), the bank’s main source of income, grew by 9.04 per cent year-on-year to ₹45,190 crore, compared to ₹41,446 crore in the same period last year. This growth was possible due to strong loan growth of 15.14 per cent, although domestic net interest margin (NIM) saw a marginal decline of 0.03 per cent to 3.12 per cent.
Asset quality improved, but provisioning increased
There is good news on the asset quality front of the bank. The gross non-performing assets ratio has declined to 1.57 per cent by December 31, 2025, from 1.73 per cent in the September quarter. However, the bank has taken a cautious approach and made a huge increase in the provisioning. Total provisions in this quarter stood at ₹4,507 crore, which was only ₹911 crore in the same quarter last year. At the same time, the figure of new slippage (new bad loans) increased to ₹ 4,458 crore, which was ₹ 3,823 crore last year.
Mathematics of other income and expenses
The bank’s non-interest income recorded a spectacular jump of 15.65 percent, which increased to ₹8,404 crore. SBI Chairman CS Setty told in the press conference that the special dividend of ₹ 2,200 crore received from SBI Mutual Fund has a major contribution in this profit. Besides, recovery from fee income and written-off accounts also supported profits. However, the total expenses of the bank have also increased. This figure has increased from last year’s ₹1,04,917 crore to ₹1,08,052 crore.
Highlights of SBI results
- Standalone Profit: ₹21,028 crore (highest ever)
- Loan Growth: increase of 15.14%
- Deposit Growth: 9.02% (in October-December period)
- Gross NPA: improved to 1.57%
- capital adequacy ratio: 14.04%
These results of SBI show that the government banking sector remains strong. Credit growth of over 15% and declining NPAs indicate that the bank is maintaining a balance of caution and aggression in its lending process. However, the market will continue to keep an eye on increasing slippage and provisioning. With a Capital Adequacy Ratio of 14.04% the Bank is well positioned to meet future credit demand.
