SBI share price jumps over 6.5%, hitting record high as banking behemoth posts its highest-ever net in Q3 FY26; key details to know

The stock jumped as much as 6.62% to hit a record high of ₹1,137 on the NSE.

Data show that the stock today posted its best performance in five years.

Shares rallied as the banking behemoth on Saturday reported an all-time high profit of ₹21,028 crore in the December quarter of FY26 (Q3 FY26) on a standalone basis.

On a standalone basis, a special dividend by the IPO-bound asset management arm helped the country's largest bank report a 24% jump in the net profit to ₹21,028 crore, its highest ever.

SBI Mutual Fund, which is preparing for an initial public offering (IPO), paid a ₹2,200 crore special dividend, which was cited by Chairman C S Setty as one of the reasons for the high profit growth.

SBI Q3 FY26: Key Numbers

The bank's core net interest income (NII) grew 9.04% to ₹45,190 crore from ₹41,446 crore seen in the year-ago period on the back of 15.14% loan growth and a 0.03% compression in the domestic net interest margin at 3.12%.

Loan growth target revised

Setty announced an upward revision in the loan growth target for the ongoing FY26 at 13-15% as against the earlier 12-14%, encouraged by the "rebound" in the corporate loan growth and the retail segment holding up well.

On a day when India and the US declared broader contours of their trade agreements in the works, Setty said the bank is enthused by such developments, and the same will definitely help in the credit growth.

The bank reported a 9.02% deposit growth during the October-December period.

Setty said the bank's credit-deposit ratio stands at a comfortable 72%, allowing a lot of headroom to grow, but flagged challenges from a "structural change" to banks given the "financialisation" in the economy, which is leading household savings to be channelled to avenues beyond deposits.

Key points that Setty said

Going forward, banks will have to formulate strategies to ensure that they are able to raise sufficient resources at a favourable price for addressing the credit demand, he said, adding that deepening of the corporate debt markets will go a long way in helping banks.

Making it clear that SBI has sufficient resources at its disposal, including over ₹3.4 lakh crore in excess government securities investments and a low CD ratio, Setty said the bank has embarked on a countrywide deposit mobilisation exercise from branches.

With a view that branches will be the source of deposits rather than transactions for customers, Setty said SBI has begun the ABCD project, or All Branches Should Contribute to Deposits, he said.

The non-interest income, which includes the dividend from the MF arm, grew 15.65% to ₹8,404 crore during the reporting quarter.

The overall expenses were up at ₹1,08,052 crore as against the ₹1,04,917 crore in Q3 of 2024-25, and Setty said the bank will persevere to keep the cost-to-income ratio at the current levels.

Setty said corporate loans grew 13.37% and will continue to be in double digits. Measures like allowing banks to lend to Real Estate Investment Trusts, announced by the RBI on Friday, will help banks, he added.

Loan pipeline

The bank has a pipeline of nearly ₹8 lakh crore, which includes ₹4.41 lakh crore of loans which are sanctioned but yet to be disbursed, and the remainder at different levels of discussions.

Its managing director, Ashwini Tewari, said the ₹4.41 lakh crore of sanctioned loans includes ₹1.50 lakh crore of project loans.

The fresh slippages came at ₹4,458 crore against ₹3,823 crore in the year-ago period.

The gross non-performing assets (GNPA) ratio improved to 1.57% as of December 31, 2025, the best in two decades, from 1.73% in September, while the overall provisions came at ₹4,507 crore as against ₹911 crore in the year-ago period.

Setty identified geopolitical tensions, global trade uncertainties, financial market volatility, and commodity price fluctuations as the key risks going forward but denied that the bank was staying out of any sector or being cautious.

The bank chairman denied aggressively pricing or underpricing loans to gain market share, pointing out that the returns are very important for the bank.

'Digital-First' institution

The country's largest lender is progressing to become a "digital-first" institution, Setty said, welcoming the RBI's moves to compensate defrauded customers up to ₹25,000.

Overall capital adequacy stood at 14.04% as of December 31, 2025, with the core buffer at 10.99%.

The SBI scrip had closed 0.65% down at ₹1,066.40 a piece on the BSE on Friday, as against gains of 0.32% on the benchmark.

About SBI

State Bank of India (SBI) is India’s largest public sector bank and one of the most trusted financial institutions in the country. Founded in 1806, its history spans over two centuries. SBI has been at the centre of India’s banking and financial ecosystem. The bank provides a wide range of banking and financial services to individuals, businesses, corporates, and governments across India and internationally.

SBI is the flagship bank of the State Bank Group and is owned by the Government of India. It has a vast domestic (in almost all corners of the country) and global presence with thousands of branches, ATMs, and digital touchpoints.

State Bank of India offers a vast array of services, including retail banking, corporate banking, treasury operations, international banking, insurance, mutual funds, and digital financial solutions. Its balance sheet is robust, it has an extensive customer base, and it continues to evolve with time through digital transformation.