SBI Q3 Results 2026: Net Profit Hits All-Time High of ₹21,028 Crore

By Kaushik 08, February 2026

The State Bank of India (SBI) has once again solidified its position as India’s banking powerhouse. On February 7, 2026, the country’s largest public sector lender released its financial results for the third quarter (Q3 FY26), reporting a record-breaking standalone net profit and a significant improvement in asset quality.

All-Time High Profits

​SBI reported a standalone net profit of₹21,028 crore for the quarter ended December 31, 2025. This marks a massive 24.5% year-on-year (YoY) increase compared to the ₹16,891 crore reported in the same quarter last year. On a consolidated basis, the bank’s profit rose by 13.06% to reach ₹21,317 crore.
​The surge in profit was primarily driven by:
​* Robust growth in core interest income.
​* A special dividend of ₹2,200 crore from SBI Mutual Fund.
​* Strong recoveries from written-off accounts.

Key Revenue and Margin Strength

The Net Interest Income (NII), which is the difference between interest earned and interest expended, grew by 9.04% YoY, reaching ₹45,190 crore.
​While the income grew, the Net Interest Margin (NIM)—a key indicator of a bank’s profitability—saw a slight compression. The domestic NIM stood at 3.12%, a marginal dip from previous quarters, reflecting the competitive environment for deposits and the rising cost of funds.

Strong Credit and Deposit Expansion

SBI’s balance sheet continues to expand at a healthy pace, with the total business now crossing the ₹103 lakh crore milestone.
​Advances: Total advances grew by 15.14% YoY, crossing ₹46 lakh crore. This growth was broad-based:
​* SME Loans: Surged by 21%.
​* Retail Personal Loans: Grew by 15%.
​* Corporate Loans: Increased by 13%.
​* Deposits: Total deposits increased by 9.02% YoY, exceeding ₹57 lakh crore. The CASA (Current Account Savings Account) ratio remained stable at 39.13%.

Notable Gains in Asset Quality

One of the most impressive highlights of the Q3 results is the consistent improvement in asset quality.

Metric Q3 FY26 Q3 FY25
Gross NPA Ratio 1.57% 2.07%
Net NPA Ratio 0.39% 0.53%
Provision Coverage Ratio (PCR) 75.54% –

The Gross NPA fell to 1.57% from 1.73% in the previous quarter, signaling that the bank is effectively managing its bad loans. The credit cost for the quarter remained low at 0.29%.

Digital Transformation: The YONO Factor

SBI’s digital-first approach continues to yield results. In Q3 FY26, over 68% of new savings accounts were opened through the YONO app. Furthermore, digital and alternate channels now account for nearly 98.6% of the bank’s total transactions, highlighting a massive shift toward paperless banking.

Final Verdict & Future View

With a Capital Adequacy Ratio of 14.04%, SBI is well-capitalized to fund India’s infrastructure and retail credit needs. Despite global geopolitical tensions and trade uncertainties, Chairman C.S. Setty expressed confidence in the bank’s liquidity and growth trajectory.
​For investors, these results reflect a bank that is not only growing its bottom line but also cleaning up its balance sheet, making it a “pillar of strength” for the Indian economy.

Disclaimer :

This blog does not provide financial, investment, or trading advice. All content is for educational and informational purposes only. Please consult a certified financial advisor before making any investment decisions. The author will not be responsible for any financial losses incurred