State Bank of India
The country’s largest public sector bank, State Bank of India (SBI), has performed brilliantly in the third quarter (Q3FY26) of the financial year 2025-26. The bank’s net profit increased by 24.5% year-on-year to ₹21,028 crore. Strong Net Interest Income (NII), sharp rise in non-interest income, recovery from written off loans and huge dividend from SBI Mutual Fund were the important reasons behind this growth.
Rise in NII and non-interest income
SBI’s net interest income increased by 9% to ₹45,190 crore in the December quarter. The total loan (advance) of the bank increased by more than 15% to ₹ 46.83 lakh crore. At the same time, non-interest income from fees and other sources increased by 66% to ₹ 18,359 crore, which provided strong support to the overall profit.
Improvement in NIM and asset quality
The bank’s domestic net interest margin (NIM) reached 3.12%, which is better than the previous quarter. There was also a clear improvement in asset quality. Gross NPA reduced to 1.57% and Net NPA to 0.39%, further strengthening the balance sheet of the bank.
Demand for credit in every segment
SBI Chairman C.S. According to Setti, the demand for credit remains strong in all segments like retail, agriculture, MSME and corporate. Retail loans increased by 15%, agriculture by 16.5%, SME by 21% and wholesale loans by more than 13%. Due to this confidence, the bank has increased the credit growth estimate for FY26 to 1315%.
Deposit growth becomes a challenge
While credit growth remained strong, deposit growth remained limited at 9%. CASA deposits increased by about 8.9%. The bank says that people are now moving towards market-related investment options, due to which there is pressure in raising deposits.
Further strategy and confidence
SBI’s focus will be on increasing retail term deposits, strengthening digital platform and RAM (Retail-Agri-MSME) segment. Also, the bank is positioning itself well to take advantage of the benefits to the economy from recent international trade deals.