Gross NPA Ratio
1.57%
-50bps YoY
Lowest in over two decades; reflects disciplined credit practices and sustained recoveries.
SBIN
Diversified
31 Jan 2026
Sbin Ltd — Q3 FY26
SBI reported its highest-ever quarterly net profit of INR 21,028 crore, up 24.49% YoY, driven by strong operating profit growth of 39.54% YoY and lower credit costs of 0.29%.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
SBI reported its highest-ever quarterly net profit of INR 21,028 crore, up 24.49% YoY, driven by strong operating profit growth of 39.54% YoY and lower credit costs of 0.29%. Net interest income grew 9% YoY to INR 45,190 crore, with domestic NIM at 3.12%. Credit growth accelerated to 15.14% YoY, led by broad-based expansion across retail, agriculture, SME, and corporate segments. Asset quality improved further, with gross NPA at 1.57% (down 50bps YoY) and net NPA at 0.39%. Management revised credit growth guidance upward to 13-15% for Q4, citing positive economic tailwinds from trade deals and budget measures. The bank remains focused on maintaining ROA above 1% and cost-to-income below 50%. Key risks include potential margin compression from corporate loan growth and deposit repricing lag.
SBI ने अपना अब तक का सबसे बड़ा तिमाही लाभ 21,028 करोड़ रुपये दर्ज किया, जो पिछले साल की समान तिमाही से 24.49% अधिक है। यह मजबूत परिचालन लाभ (कमाई से खर्च घटाने के बाद बचा पैसा) में 39.54% की बढ़ोतरी और कम कर्ज लागत (बैड लोन के लिए रखा गया कम पैसा) 0.29% के कारण हुआ। ब्याज से होने वाली आय (लोन पर कमाई) 9% बढ़कर 45,190 करोड़ रुपये हो गई। लोन देने में 15.14% की तेजी आई, जो रिटेल, किसान, छोटे कारोबार और कंपनियों सभी क्षेत्रों में बढ़ा। खराब लोन (ग्रॉस एनपीए) घटकर 1.57% रह गया। प्रबंधन ने अब लोन वृद्धि का अनुमान 13-15% कर दिया है। बैंक का ध्यान मुनाफा (ROA) 1% से ऊपर रखने और खर्च कम करने पर है। मुख्य जोखिम कॉरपोरेट लोन से मार्जिन कम होना और जमा पर ब्याज दर बढ़ना है।
Key Numbers
Net NPA Ratio
0.39%
-14bps YoY
Industry-leading asset quality with strong provision coverage ratio of 75.54%.
CASA Ratio
39.13%
Flat YoY
Healthy low-cost deposit base despite competitive environment; current account grew 10.32% YoY.
Credit Growth (YoY)
15.14%
+15.14pp YoY
Broad-based growth across RAM and corporate; guidance revised to 13-15% for Q4.
What Changed vs Last Quarter
NEW
Exit NIM of 3% for FY26 and 3% through cycles
Management reiterated NIM guidance of 3% for Q4 exit and long-term, with no significant upside expected.
NEW
ROA guidance of 1% through cycles
Management maintained 1% ROA guidance, emphasizing consistency over cycles despite current outperformance.
UPDATED
Credit growth guidance revised to 13-15% for Q4 FY26
Management raised the earlier 12-14% guidance to 13-15% for the current quarter, driven by strong momentum across all segments.
UPDATED
Cost-to-income ratio below 50%
Management reiterated target to keep cost-to-income below 50%, supported by operating leverage and digital initiatives.
DROPPED
NIM guidance of 3% for FY26
Management expects domestic NIM to be around 3% for the full year, with a U-shaped trajectory—declining in Q2 and improving from Q3 onwards.
DROPPED
ROA above 1% and ROE above 15%
Structural targets of return on assets above 1% and return on equity above 15% through the cycle are reaffirmed.
NEW RISK
Margin compression from corporate loan growth
Corporate loans typically carry lower yields; rapid growth could pressure NIMs despite management's confidence in pricing discipline.
NEW RISK
Deposit repricing lag and cost of funds stability
Management indicated cost of funds may not decline further, and full transmission of rate cuts may not materialize, limiting margin expansion.
NEW RISK
PSL shortfall and PSLC costs
Growth in priority sector lending may fall short, requiring costly PSLC purchases, especially in small and marginal farmer segments.
NEW RISK
Treasury income volatility from yield movements
Hardening yields could impact MTM on HFT/FVTPL books, though management sees limited impact given small book size.
RISK GONE
Xpress Credit asset quality deterioration
GNPA in Xpress Credit rose to 1.2% on a flat book, though management attributes it to base effect and expects stabilization.
RISK GONE
Global tariff uncertainty impact
Supply chain disruptions from US tariffs could affect working capital and credit quality in export-oriented sectors, though SBI's direct exposure is minimal.
RISK GONE
NIM compression in near term
NIM may decline further in Q2 before recovering, driven by deposit repricing lag and CASA ratio decline.
RISK GONE
Competition in corporate lending
Prepayments of INR 12,000 crore and shift to CP market by corporates indicate pricing pressure, potentially limiting corporate credit growth.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25
Efforts to mobilize deposits through data analytics and branch-level focus aim to push deposit growth above 10%.
Mentioned in Q2 FY25, Q3 FY25
SMA-2 loans increased to INR 7,424 crore from INR 1,840 crore, though management attributed most to one account that has been regularized.
Mentioned in Q1 FY25, Q4 FY25
Board approved raising equity capital up to INR 25,000 crore, contingent on business needs and market conditions.
Mentioned in Q3 FY25, Q4 FY25
Further repo rate cuts could pressure net interest margins, though management expects to mitigate via deposit rate adjustments.
Mentioned in Q1 FY26, Q2 FY25
Structural targets of return on assets above 1% and return on equity above 15% through the cycle are reaffirmed.
Management Guidance
Credit growth guidance revised to 13-15% for Q4 FY26
Management raised the earlier 12-14% guidance to 13-15% for the current quarter, driven by strong momentum across all segments.
Management guidance growthExit NIM of 3% for FY26 and 3% through cycles
Management reiterated NIM guidance of 3% for Q4 exit and long-term, with no significant upside expected.
Management guidance marginsROA guidance of 1% through cycles
Management maintained 1% ROA guidance, emphasizing consistency over cycles despite current outperformance.
Management guidance marginsCost-to-income ratio below 50%
Management reiterated target to keep cost-to-income below 50%, supported by operating leverage and digital initiatives.
Management guidance marginsKey Risks
Margin compression from corporate loan growth
Corporate loans typically carry lower yields; rapid growth could pressure NIMs despite management's confidence in pricing discipline.
medium · analyst_questionDeposit repricing lag and cost of funds stability
Management indicated cost of funds may not decline further, and full transmission of rate cuts may not materialize, limiting margin expansion.
medium · management_commentaryPSL shortfall and PSLC costs
Growth in priority sector lending may fall short, requiring costly PSLC purchases, especially in small and marginal farmer segments.
medium · analyst_questionTreasury income volatility from yield movements
Hardening yields could impact MTM on HFT/FVTPL books, though management sees limited impact given small book size.
low · analyst_questionNotable Quotes
Our performance in the third quarter of FY 2026 reflects continuity, consistency and the enduring strength of our franchise.
We have not compromised on the margins. We have ensured that the NIM guidance, what we have given is maintained despite 13% credit growth coming from the corporate side.
Our objective is to keep the cost to income ratio below 50. I think that guidance we had earlier given, we are sticking to that guidance.
Frequently Asked Questions
What was Sbin's revenue in Q3 FY26?
Sbin reported revenue of — in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Sbin management give for FY27?
Credit growth guidance revised to 13-15% for Q4 FY26: Management raised the earlier 12-14% guidance to 13-15% for the current quarter, driven by strong momentum across all segments. Exit NIM of 3% for FY26 and 3% through cycles: Management reiterated NIM guidance of 3% for Q4 exit and long-term, with no significant upside expected. ROA guidance of 1% through cycles: Management maintained 1% ROA guidance, emphasizing consistency over cycles despite current outperformance. Cost-to-income ratio below 50%: Management reiterated target to keep cost-to-income below 50%, supported by operating leverage and digital initiatives.
What are the key risks for Sbin in FY27?
Key risks include Margin compression from corporate loan growth — Corporate loans typically carry lower yields; rapid growth could pressure NIMs despite management's confidence in pricing discipline.; Deposit repricing lag and cost of funds stability — Management indicated cost of funds may not decline further, and full transmission of rate cuts may not materialize, limiting margin expansion.; PSL shortfall and PSLC costs — Growth in priority sector lending may fall short, requiring costly PSLC purchases, especially in small and marginal farmer segments.; Treasury income volatility from yield movements — Hardening yields could impact MTM on HFT/FVTPL books, though management sees limited impact given small book size..
Did Sbin meet its previous quarter's guidance?
Of 2 tracked promises, management 0 met, 0 close, 2 missed.
Where can I read the full Sbin Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.