Core Insights - SBI reported a 24% year-on-year (YoY) increase in standalone net profit, reaching Rs 21,028 crore for Q3FY26, marking the highest quarterly profit in the bank's history [1][9] - The strong earnings were driven by sustained loan growth and stable margins, with net interest income (NII) rising 9% YoY to Rs 45,190 crore and operating profit surging 40% YoY to Rs 32,862 crore [1][9] Financial Performance - The bank's net interest margin (NIM) was recorded at 2.99% for the quarter, with domestic NIM at 3.12%, indicating margin stability despite a challenging interest rate environment [9] - For the nine months ending December 2025, the average domestic NIM was 3.08% [9] Asset Quality - SBI's gross NPA ratio improved to 1.57%, down 50 basis points YoY, while net NPA decreased to 0.39%, a reduction of 14 basis points [2][9] - The slippage ratio was contained at 0.40%, and credit cost remained low at 0.29%, reflecting effective risk management [2][11] Balance Sheet Highlights - SBI's total business surpassed Rs 103 lakh crore, with deposits exceeding Rs 57 lakh crore and advances crossing Rs 46 lakh crore [5][11] - Advances grew by 15% YoY, primarily driven by a 15% increase in domestic lending, indicating steady demand across segments [5][11] Brokerage Outlook - Nuvama Research upgraded its outlook on SBI following the strong Q3 performance, raising its credit growth guidance for FY26 to 13%-15% from the previous 12%-14% [7][11] - The target price for SBI shares was set at Rs 1,250 [9]
SBI shares in focus after strong Q3FY26 results; Nuvama raises target to Rs 1,250
The Economic Times·2026-02-09 02:24