State Bank of India Q3FY26 Results Show Profit Rise and Improving Asset Quality

State Bank of India reported stronger profitability for Q3FY26 and 9MFY26, supported by stable margins and controlled credit costs. Profit after tax for the quarter rose to Rs 21,028 crore, up 24.49% year-on-year and 4.31% sequentially. For the nine months ended 31 December 2025, PAT increased 15.48% year-on-year to Rs 60,348 crore.

Asset quality indicators strengthened further during the period, with both gross and net non-performing assets reducing. The GNPA ratio for Q3FY26 declined to 1.57%, while the NNPA ratio eased to 0.39%. These levels reflected lower stress formation, better recoveries and a cautious stance on provisioning across key loan portfolios.

The improvement in asset quality was broad based. Gross NPAs fell to Rs 73,637 crore, down 12.71% year-on-year and 3.42% quarter-on-quarter. Net NPAs reduced to Rs 18,012 crore, a decline of 15.74% year-on-year and 2.43% sequentially. Management actions on resolution and underwriting supported these trends in SBI Q3FY26 results.

Ratios also moved favourably in SBI Q3FY26 results. The GNPA ratio dropped 50 basis points year-on-year and 16 basis points sequentially to 1.57%. On a nine-month basis, the GNPA ratio also stood at 1.57%, 50 basis points lower year-on-year. The NNPA ratio stayed at 0.39% for 9MFY26, down 14 basis points year-on-year.

Core operating trends in SBI Q3FY26 results remained healthy, supported by interest income growth and operating leverage. Interest income for the quarter increased to Rs 1,22,556 crore, up 4.37% year-on-year and 2.43% quarter-on-quarter. For 9MFY26, interest income rose 5.07% year-on-year to Rs 3,60,206 crore, indicating steady traction across earning assets.

Interest expenses in SBI Q3FY26 results also moved higher because of deposit cost pressures. They reached Rs 77,366 crore in Q3FY26, an increase of 1.82% year-on-year and 0.91% sequentially. For the nine-month period, interest expenses stood at Rs 2,30,959 crore, up 5.64% year-on-year, reflecting tighter system liquidity and rising funding costs.

The bank still expanded net interest income in SBI Q3FY26 results. NII climbed to Rs 45,190 crore, showing 9.04% year-on-year growth and a 5.13% sequential increase. This was supported by pricing discipline and balance sheet expansion. Domestic net interest margin for the quarter was 3.12%, up 3 basis points quarter-on-quarter, but 3 basis points lower year-on-year.

On a nine-month basis in SBI Q3FY26 results, domestic NIM was 3.08%, lower by 17 basis points year-on-year. The decline signalled continued margin compression amid elevated funding costs and competition for deposits. Despite this, the bank maintained stable spreads, aided by a favourable asset mix and higher-yielding retail segments.

SBI Q3FY26 results: operating profit, provisions and credit metrics

Operating performance in SBI Q3FY26 results strengthened notably. Operating profit for the quarter rose to Rs 32,862 crore, a 39.54% year-on-year rise and 3% quarter-on-quarter increase. For 9MFY26, operating profit reached Rs 95,311 crore, up 20.20% year-on-year, indicating better core earnings and disciplined cost management.

Provisioning trends in SBI Q3FY26 results reflected prudence. Loan loss provisions stood at Rs 3,216 crore, 39.51% higher year-on-year, but down 22.18% sequentially. Provisions for the nine-month period were Rs 12,282 crore, up 17.49% year-on-year, suggesting a conservative buffer against evolving credit conditions and macro risks.

Slippages in SBI Q3FY26 results were contained. The slippage ratio for Q3FY26 was 0.40%, improving 5 basis points quarter-on-quarter, though slightly higher year-on-year. For 9MFY26, the slippage ratio decreased to 0.54%, down 5 basis points year-on-year, pointing to stable borrower behaviour and stronger collection efforts.

Credit cost stayed within a controlled range in SBI Q3FY26 results. For the quarter, credit cost was 0.29%, 5 basis points higher year-on-year but 10 basis points lower sequentially. For the nine-month period, credit cost stood at 0.39%, up 2 basis points year-on-year, signalling a cautious yet stable risk stance.

SBI Q3FY26 results: advances, deposits and capital position

The balance sheet expanded steadily in SBI Q3FY26 results, aided by loan growth and deposit accretion. Gross advances as of December 2025 reached Rs 46.84 lakh crore, rising 15.14% year-on-year and 5.97% quarter-on-quarter. The figures highlighted sustained credit demand across corporate and retail segments during the period.

Within advances in SBI Q3FY26 results, domestic corporate loans stood at Rs 13.34 lakh crore. This portfolio grew 13.37% year-on-year and 7.60% sequentially, indicating healthier corporate credit offtake. Domestic retail personal advances were Rs 16.64 lakh crore, up 14.95% year-on-year and 4.42% quarter-on-quarter, supported by multiple retail categories.

The home loan book in SBI Q3FY26 results continued to grow. It reached Rs 9.09 lakh crore as of December 2025, reflecting 14.65% year-on-year growth and 3.24% quarter-on-quarter expansion. This confirmed housing loans remained a key driver within retail lending, with steady demand and relatively better risk characteristics.

Deposit trends in SBI Q3FY26 results showed moderate growth and rising share of term deposits. Total deposits were Rs 57.01 lakh crore, up 9.02% year-on-year and 1.96% sequentially. Domestic CASA deposits reached Rs 21.40 lakh crore, increasing 8.88% year-on-year and 0.73% quarter-on-quarter, signalling rising competition for low-cost funds.

Domestic term deposits in SBI Q3FY26 results rose to Rs 33.28 lakh crore. These grew 9.17% year-on-year and 2.84% sequentially, helped by mobilisation at competitive rates. The CASA ratio moderated to 39.13%, down 7 basis points year-on-year and 50 basis points quarter-on-quarter, indicating a gradual customer shift towards higher-yield term products.

Capital ratios remained comfortable in SBI Q3FY26 results. The CET-1 ratio was 10.99% for Q3FY26, showing a 147-basis-point year-on-year rise, though 48 basis points lower sequentially. Overall capital adequacy ratio stood at 14.04%, up 101 basis points year-on-year, while the Tier-1 ratio increased to 12.07%, higher by 122 basis points year-on-year.

The overall picture from SBI Q3FY26 results showed stronger profitability, resilient asset quality and adequate capital buffers. Growth in advances and deposits remained balanced, despite margin compression and higher funding costs. With controlled slippages and measured provisioning, the bank appeared positioned to support future credit expansion within regulatory and risk thresholds.