State Bank of India (SBI) reported a record-breaking performance for the third quarter of fiscal year 2026. The bank’s standalone net profit surged 24.5% year-on-year to reach ₹21,028.15 crore, the highest-ever quarterly profit in its history.
This milestone was driven by robust loan growth across all segments and a significant one-time boost from a special dividend payout by its asset management arm.
1. Key Financial Drivers
The record profit was fueled by both core interest income and exceptional non-interest gains:
- Special Dividend: SBI received a ₹2,200 crore special dividend from its subsidiary, SBI Mutual Fund, which is currently preparing for an Initial Public Offering (IPO).
- Net Interest Income (NII): Standalone NII grew 9.04% to ₹45,190 crore, supported by strong credit demand.
- Loan Growth: Total advances grew by 15.14% year-on-year, crossing the ₹46 lakh crore mark. Following the results, Chairman C.S. Setty revised the full-year credit growth guidance upward to 13%–15%.
2. Asset Quality: “Two-Decadal Low”
The bank achieved a major milestone in risk management, with several indicators hitting 20-year lows:
- Gross NPA Ratio: Improved to 1.57%, down from 1.73% in the previous quarter.
- Net NPA Ratio: Fell to 0.39%, reflecting extremely disciplined recovery and underwriting.
- Provision Coverage Ratio (PCR): Remained high at 92.37% (including AUCA), providing a substantial buffer against future shocks.
3. Balance Sheet & Operations
| Metric | Q3 FY26 Performance | Year-on-Year Change |
| Total Business | Crossed ₹103 Lakh Crore | Record Milestone |
| Total Deposits | ₹57.04 Lakh Crore | ↑ 9.02% |
| Operating Profit | ₹32,862 Crore | ↑ 39.54% |
| CASA Ratio | 39.13% | Slight moderation due to term deposit shift. |
4. Digital Dominance & YONO
SBI continues to lead India’s digital banking landscape:
- YONO Impact: Over 68% of new savings bank accounts in Q3 were opened through the YONO app.
- Transaction Mix: Approximately 98.6% of the bank’s total transactions now occur through alternate/digital channels, significantly reducing operational pressure on physical branches.
Conclusion: A New Benchmark for PSUs
SBI’s Q3 FY26 results have solidified its position as the “anchor” of the Indian financial system. By delivering an ROE of 20.68% at such a massive scale, the bank has proved that it can compete with private-sector peers in both efficiency and profitability. While deposit mobilization remains a “structural challenge” for the industry
