SBI Q3 preview: Net profit seen rising 5%, loan growth to stay strong

Core Viewpoint - State Bank of India (SBI) is projected to report a 5% year-on-year increase in profit for Q3FY26, reaching ₹17,810 crore, driven by strong loan growth across various segments [1] Group 1: Profit and Financial Performance - SBI's net profit for the same quarter last year was ₹16,891 crore, with results to be announced on 7 February [1] - Analysts expect SBI to achieve industry-leading credit growth of 13-14% year-on-year, supported by retail, agriculture, and small business segments [2] - SBI's total loan growth in the September quarter was nearly 13% year-on-year, amounting to ₹44.19 trillion, with domestic advances rising 12.3% [6] Group 2: Loan Growth and Market Position - The bank's corporate loans made up 33% of its domestic loan book as of 30 September 2025, with corporate loans growing 7% and retail loans increasing by 14% during the last quarter [2][6] - SBI's chairman anticipates a credit growth of 12-14% for FY26, higher than previous projections, aided by measures from the Reserve Bank of India [3] Group 3: Margins and Asset Quality - Analysts expect SBI's net interest margins (NIMs) to remain stable at over 3% in Q4 FY26, supported by low-cost deposits and a diversified loan mix [5] - The gross non-performing asset (NPA) ratio for SBI was reported at 1.73% as of September, indicating stable asset quality [6] - Credit costs are expected to remain low at 40-50 basis points over FY26-28, reflecting disciplined underwriting and steady recoveries [8]