SBI Q3 PAT up 24% on strong loan growth, stable asset quality

Core Insights - State Bank of India (SBI) reported a 24% year-on-year increase in Q3FY26 net profit, reaching ₹21,028 crore, driven by strong loan growth and stable asset quality [1] Financial Performance - Net interest income (NII) grew by 9% year-on-year to ₹45,190 crore, with a net interest margin of 2.99%, expected to rise above 3% in the next quarter [1] - Gross advances increased by 15% year-on-year to ₹46.83 lakh crore in Q3, prompting SBI to raise its credit growth guidance for FY26 to 14-15% from the previous 12-13% [3] - Deposits rose by 9% year-on-year to ₹57.01 lakh crore, with low-cost deposits maintaining a stable share of 39% [4] Asset Quality - Fresh slippages decreased to ₹4,458 crore in Q3 from ₹4,754 crore in Q2, while recoveries improved to ₹2,371 crore, with an expectation of ₹8,000 crore in recoveries for FY26 [5] - Credit cost declined by 4 basis points to 0.39% in Q3, and loan loss provisions were reduced to ₹3,216 crore from ₹4,132 crore in the previous quarter [5] - The gross non-performing asset (NPA) ratio fell by 50 basis points year-on-year to 1.57%, and the net NPA ratio decreased by 14 basis points to 0.39% in Q3 [6] Strategic Developments - SBI received a special dividend of ₹2,200 crore from its subsidiary SBI MF and plans to complete the IPO process of the company before the end of 2026 [2]