State Bank of India (NSE: SBIN), the nation’s largest commercial lender, reported its highest-ever quarterly net profit for the period ending December 2025, driven by robust loan expansion across retail and corporate segments and a significant decline in non-performing assets (NPAs) to two-decadal lows.
State Bank of India is a Fortune 500 company and India’s largest public sector bank by assets, deposits, and branches. The bank provides a comprehensive range of financial services, including retail, corporate, and international banking, alongside specialized subsidiaries in life insurance, mutual funds, and credit cards.
Key Financial & Operational Metrics – Q3 and 9M FY26
- SBI’s net profit for the third quarter (Q3FY26) rose 24.49% year-on-year to ₹21,028 crores.
- For the nine-month period (9MFY26), the bank recorded a net profit of ₹60,348 crores, up 15.48% from the previous year.
Key performance indicators for Q3 include:
- Net Interest Income (NII): ₹45,190 crores, a 9.04% increase.
- Operating Profit: ₹32,862 crores, surging 39.54%.
- Net Interest Margin (NIM): Domestic NIM stood at 3.12%, while the whole-bank NIM was 2.99%.
- Return on Assets (ROA): 1.16% for 9MFY26, continuing an upward trend since 2019.
- Return on Equity (ROE): 20.68% for the same nine-month period.
Operational & Business Highlights
- The bank’s total business crossed the ₹103 trillion milestone during the quarter.
- Gross advances grew 15.14% YoY to ₹46.84 lakh crore, with domestic growth led by the SME sector (up 21.02%) and retail personal loans (up 14.95%).
- Deposits increased by 9.02% to ₹57.01 lakh crore, supported by a healthy CASA ratio of 39.13%.
Asset Quality & Milestones
- SBI achieved industry-leading asset quality with Gross NPA at 1.57% and Net NPA at 0.39%, both reaching two-decadal lows.
- The credit cost for the quarter was contained at 0.29%, while the Provision Coverage Ratio (PCR) stood at 75.54%.
Digital Leadership & Geographic Presence
- The bank’s digital transformation continues to accelerate, with 98.6% of transactions now occurring through alternate channels.
- Flagship digital platform, YONO, has reached 9.65 crore registered users, accounting for 68% of new savings accounts opened in Q3FY26.
- Geographically, SBI maintains a dominant domestic footprint with over 22,500 branches and a significant international presence through offices in 29 countries, including major hubs like the USA, UK, and Singapore.
Target Customers & Market Sentiment
- SBI serves a diverse customer base, ranging from individual retail borrowers (home and auto loans) to large PSUs and multinational corporations.
- Market sentiment remains positive as the bank maintains a domestic market share of over 22% while improving its capital adequacy ratio to 14.04%.
Management Commentary & Guidance
- Management noted that growth was driven by a balance of higher interest and non-interest income.
- Strategic focus remains on CASA mobilization and expanding the SME portfolio, which recently crossed the ₹6 lakh crore mark.
- Looking forward, SBI has committed to a Net Zero vision by 2055, with plans for green advances to constitute 7.5% of domestic gross advances by 2030.
Summary
Results underline SBI’s resilience and scale advantage in India’s banking sector. Stable earnings growth, improved asset quality and consistent credit expansion reinforce the bank’s long-term growth trajectory, supported by digital transformation and a broad-based lending franchise.