SBI Q3 Results: Net Profit Hits Record Rs 21,028 Cr, NII And Operating Income All Shine

State Bank of India (SBI) has announced the financial results for the quarter and nine months ended 31.12.2025. With profit after tax (PAT) rising to Rs 21,028 crore in Q3FY26, up 24.49% YoY and 4.31% QoQ, SBI's profitability improved. Driven by robust core income performance and significant operating leverage, 9MFY26 PAT reached Rs 60,348 crore, representing a healthy 15.48% YoY growth.

The company's enhanced operating profitability and robust interest income growth helped it produce a stable financial performance in Q3FY26. As a result of steady loan growth and steady earning assets, interest income climbed to Rs 1,22,556 crore for the quarter, representing a 4.37% YoY and 2.43% QoQ rise. Interest income gained 5.07% YoY to Rs 3,60,206 crore during a nine-month period, indicating continued strength into FY26.

Interest expenses also edged higher, reaching Rs 77,366 crore in Q3FY26, up 1.82% YoY and 0.91% QoQ, largely due to elevated deposit costs. For the nine-month period, interest expenses increased 5.64% YoY to Rs 2,30,959 crore. Despite this, the bank was able to raise its net interest income (NII) to Rs 45,190 crore, registering a robust 9.04% YoY growth and a 5.13% sequential rise, helped along by pricing discipline and balance sheet expansion.

In Q3FY26, the domestic net interest margin (NIM) was 3.12%, indicating a little gain of 3 basis points on a quarter-on-quarter basis but a drop of 3 basis points on a year-on-year basis as a result of pressure from higher funding costs. NIM fell 17 basis points YoY to 3.08% on a nine-month basis, reflecting ongoing margin compression in the face of tight liquidity.

Operating profit climbed significantly to Rs 32,862 crore in Q3FY26, showing a noteworthy 39.54% YoY rise and a 3% QoQ increase, demonstrating the continued strength of operational performance. Operating profit improved 20.20% YoY to Rs 95,311 crore for the nine months that ended in FY26, demonstrating better core profits and efficient cost control.

Despite being 39.51% higher YoY, loan loss provisions on the asset quality front dropped sequentially to Rs 3,216 crore, down 22.18% QoQ. This indicates cautious provisioning in the face of changing credit situations. Provisions increased 17.49% YoY to Rs 12,282 crore for the nine-month period.

As of December 2025, the bank reported a robust boost to its balance sheet, driven by consistent deposit accretion and solid growth in advances. With a strong 15.14% year-on-year (YoY) and 5.97% quarter-on-quarter (QoQ) growth, gross advances reached Rs 46.84 lakh crore, indicating persistent credit demand across key segments.

Domestic corporate loans, which accounted for Rs 13.34 lakh crore of the advances mix, jumped 13.37% YoY and 7.60% QoQ, suggesting a rebound in corporate credit activity. Due to widespread momentum across retail categories, domestic retail personal advances rose to Rs 16.64 lakh crore, up 14.95% YoY and 4.42% QoQ.

As of December 2025, the home loan portfolio has grown steadily to Rs 9.09 lakh crore. This category had a 3.24% QoQ growth and a 14.65% YoY gain. The liabilities side had a 9.02% YoY gain and a 1.96% sequential rise in total deposits, which reached Rs 57.01 lakh crore. Despite modest QoQ growth of 0.73%, domestic CASA deposits were at Rs 21.40 lakh crore, up 8.88% YoY, suggesting higher competition for low-cost deposits.

Domestic term deposits rose to Rs 33.28 lakh crore, posting a 9.17% YoY and 2.84% QoQ growth, supported by higher deposit mobilisation at competitive rates. However, the CASA ratio moderated to 39.13%, declining 7 basis points YoY and 50 basis points QoQ, indicating a gradual shift toward term deposits amid rising funding costs. Asset quality continued to improve, with gross non-performing assets (GNPA) declining to Rs 73,637 crore, down 12.71% YoY and 3.42% QoQ. Net NPAs (NNPA) also fell to Rs 18,012 crore, reflecting a 15.74% YoY and 2.43% QoQ reduction.

Lower slippages and ongoing recovery momentum helped to assist the asset quality's further strengthening in Q3FY26. As a result of improved asset resolution and stricter underwriting guidelines, the gross non-performing asset (GNPA) ratio fell to 1.57%, falling 50 basis points annually and 16 basis points sequentially. GNPA also improved by 50 basis points YoY on a nine-month basis, coming in at 1.57%.

In Q3FY26, the net NPA (NNPA) ratio lowered even more to 0.39%, declining 3 basis points QoQ and 14 basis points YoY. Indicating better recoveries and efficient provisioning buffers throughout the loan portfolio, NNPA for the nine months ending FY26 stayed at 0.39%, down 14 basis points YoY.

Slippage trends remained under control despite a marginal uptick year-on-year. The slippage ratio stood at 0.40% in Q3FY26, improving 5 basis points QoQ, while on a nine-month basis it declined to 0.54%, down 5 bps YoY, highlighting stable credit behaviour and improved collection efficiency.

Despite being 5 basis points higher YoY, the credit cost for the quarter was controlled at 0.29%, improving 10 basis points QoQ. A cautious approach in the face of changing macro and credit circumstances is reflected in the credit cost, which climbed 2 basis points YoY to 0.39% for the nine-month period.

The bank maintained levels of capital adequacy that were comfortable. Despite a 48-bps QoQ dip, the CET-1 ratio was 10.99% in Q3FY26, showing a solid 147-bps YoY growth. While the capital adequacy ratio (CAR) was strong at 14.04%, up 101 bps YoY, the Tier-1 ratio climbed to 12.07%, up 122 bps YoY, offering enough headroom to fund future development.