SBI’s net interest income (NII) rose 9 per cent year-on-year to ₹45,190 crore, while net interest margin stood at 2.99 per cent, up 2 basis points (bps) on-quarter and is expected to cross above 3 per cent in the next quarter, chairman CS Setty said.
The bank received a special dividend of ₹2,200 crore from its subsidiary SBI MF and plans to complete the company’s IPO process before the end of 2026, Setty said.
Core activity
SBI’s gross advances grew 15 per cent year-on-year to ₹46.83 lakh crore in the third quarter, and the lender raised its loan growth expectations for FY26 to 14-15 per cent from 12-13 per cent earlier. SBI has seen strong growth in retail, agriculture and MSME lending and has ₹7.9 lakh of corporate loans in the pipeline.
Deposits rose 9 per cent year-on-year to ₹57.01 lakh crore, and the share of low-cost deposits remained stable at 39 per cent. Setty said that due to intense competition among banks to mobilize deposits, the scope for cutting deposit rates is small.
Stable asset quality
SBI’s new slippages stood at ₹4,458 crore in the third quarter, down from ₹4,754 crore in the second quarter. Recoveries improved to ₹2,371 crore in the third quarter and the bank expects ₹8,000 crore in recoveries in FY26.
Credit costs fell by 4 basis points (bps) to 0.39 percent in the third quarter. Provisions for credit losses stood at ₹3,216 crore in the third quarter, down from ₹4,132 crore a quarter ago.
Overall, the bank’s gross and net non-performing asset ratio fell 50 basis points and 14 basis points year-on-year to 1.57 percent and 0.39 percent, respectively, in the third quarter. END
Published on February 7, 2026
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