State Bank of India (SBI) on Friday reported a 24.5 per cent year-on-year rise in standalone profit after tax to Rs 21,028 crore for the third quarter of FY26, driven by steady growth in net interest income and robust credit demand across segments.
The country’s largest lender had posted a profit of Rs 16,891.44 crore in the corresponding quarter last year. Net Interest Income (NII) rose 9.04 per cent year-on-year during the quarter, although the net interest margin (NIM) dipped marginally to 3.12 per cent from 3.15 per cent a year ago.
SBI’s balance sheet continued to expand, with gross advances rising 15.17 per cent to Rs 46.8 lakh crore, while gross deposits grew 9.02 per cent to Rs 57 lakh crore in the quarter ended December 2026. On the asset quality front, the bank reported a marked improvement, with gross non-performing assets (GNPA) declining 12.3 per cent to Rs 73,637 crore, and net NPAs falling 15.74 per cent to Rs 18,012 crore.
Commenting on the performance, SBI Chairperson C.S. Setty said deposit growth remained resilient despite intense competition. “Deposit growth remained healthy with current account growth in double digits despite a competitive market environment,” he said.
He added that foreign office deposits rose 8.32 per cent year-on-year, while credit growth stayed strong across retail, agriculture, MSME and corporate segments. Together, these portfolios crossed Rs 26 trillion, registering 16.51 per cent year-on-year growth. SBI’s domestic credit-deposit ratio improved to 72.98 per cent, an increase of 404 basis points compared to the year-ago period.
Setty cautioned that geopolitical tensions, global trade uncertainty, financial market volatility and commodity price fluctuations remain downside risks. He also noted a structural shift in household savings towards capital markets, which could pressure deposit growth over time.
“Banks will need to restructure their balance sheets and increasingly access bond markets to mobilise funds,” he said, adding that bond funding could offer flexibility if costs remain comparable to deposits. The remarks assume significance amid the government’s push for ‘Viksit Banking’, following the finance minister’s announcement of a High-Level Committee on Banking for Viksit Bharat.
Setty also confirmed that SBI Mutual Fund is expected to launch its initial public offering before September 2026, marking a key milestone for the group. |
