State Bank of India (SBIN) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly net profit of ₹21,028 crore in Q3 FY26, up 24.49% year-over-year, driven by higher operating profitability, net interest and non-interest income, and lower credit costs at 0.29%.

• Total business surpassed ₹103 trillion, with deposits at ₹57.0 lakh crore and advances at ₹46.8 lakh crore, both up 15.14% YoY, and robust growth across all credit segments.

• Digital transformation initiatives, including YONO, continue to scale, with over 9.65 crore registered users and 98.6% of transactions through alternate channels.

• Asset quality remains industry-leading, with gross NPA at 1.57% and net NPA at 0.39%, both at multi-decade lows.

• Subsidiaries contributed significantly, with higher dividends, strong digital and customer-oriented growth, and robust PAT growth across insurance and mutual fund businesses.

Financial highlights

• Net interest income rose 9.04% YoY to ₹45,190 crore; domestic NIM at 3.12% for the quarter; operating profit increased 39.54% YoY to ₹32,862 crore.

• Non-interest income surged 66.28% YoY to ₹18,359 crore, including a one-time profit from a stake sale.

• Total deposits grew 9.02% YoY; retail term deposits up 14.54%; CASA ratio at 39.13%.

• Credit growth reached 15.14% YoY, with corporate credit up 13.37%.

• Cost-to-income ratio improved to 48.29% in Q3FY26 from 55.13% a year ago.

Outlook and guidance

• Credit growth guidance for FY26 revised upward to 13%-15%, with secular growth across all segments.

• NIM guidance maintained at 3% for Q4 and through cycles; ROA guidance at 1% through cycles.

• Sustained focus on digital transformation, asset quality, and expanding digital banking footprint.

• No plans to tweak MCLR or deposit rates in the near term; cost of funds expected to remain stable.

• Subsidiaries expected to continue on a higher growth trajectory, with CVE income targeted at $1 billion.