India-US trade agreement along with other FTAs positive for Indian economy: SBI Chairman

Economic Impact of Trade Agreements - The India-US trade agreement and other recent Free Trade Agreements (FTAs) are viewed as extremely positive for the Indian economy, providing significant opportunities for corporates and micro, small, and medium enterprises (MSMEs) to integrate with global supply chains [1][11] - A notable positive development is the absence of tariff overhang, which further supports economic growth [1][11] Liquidity and Monetary Policy - System liquidity is currently adequate and in surplus, with the Reserve Bank of India's (RBI) pre-emptive approach to liquidity management expected to ensure smooth credit flow [4][11] - The RBI's decision to maintain the repo rate was anticipated, contributing to confidence in the banking system [1][11] State Bank of India Financial Performance - State Bank of India (SBI) reported a total business exceeding Rs 103 trillion in Q3FY26, with deposits and advances at over Rs 257 trillion and Rs 46 trillion, respectively [5][11] - SBI achieved its highest-ever quarterly net profit of Rs 21,028 crore in Q3FY26, marking a year-on-year growth of 24.49% [6][11] - Operating profit surged 39.54% YoY to Rs 32,862 crore, with a net interest income (NII) increase of 9.04% YoY [6][11] Growth in Advances and Deposits - Whole Bank advances grew by 15.14% YoY, with domestic advances increasing by 15.44% [7][11] - Retail advances rose by 16.51% YoY, with significant growth in SME advances at 21.02% YoY and agriculture advances at 16.56% YoY [8][11] - Whole Bank deposits increased by 9.02% YoY, with CASA deposits rising by 8.88% YoY [9][11] Asset Quality and Risk Management - Asset quality improved, with the gross NPA ratio declining by 50 basis points YoY to 1.57% and the net NPA ratio improving by 14 basis points to 0.39% [9][10][11] - The provision coverage ratio (PCR) increased by 88 basis points YoY to 75.54%, indicating stronger risk management [10][11] Digital Adoption and Transaction Growth - SBI reported continued traction in digital adoption, with over 68% of savings bank accounts opened digitally through YONO in Q3FY26 [10][11] - The share of alternate channels in total transactions increased to 98.6% in 9MFY26 from 98.1% in the corresponding period last year [10][11]