State Bank of India (SBI) reported its highest-ever quarterly profit in the December 2025 quarter and the numbers pushed the stock to a fresh record. The results have shifted investor focus toward repeatability, not one-quarter strength, as the bank posts growth alongside improving asset quality.
SBI said net profit rose to ₹21,028 crore in Q3 FY26, up 24.49% year on year. Net interest income increased 9.04% to ₹45,190 crore, while operating profit climbed to ₹32,862 crore. Whole-bank net interest margin stood at 2.99%, and domestic NIM came in at 3.12%.
The market reacted quickly after the disclosure. SBI shares rose about 6–7% on the next trading session and hit a record high, marking the stock’s strongest single-day move in more than a year. Traders linked the move to the profit record and improved balance-sheet metrics.
SBI reported 15.14% year-on-year growth in gross advances to ₹46.83 lakh crore. Domestic advances increased 15.44%, while foreign offices’ advances grew 13.41%. Within the domestic mix, SME advances rose 21.02% and agriculture advances grew 16.56%, while retail advances increased 16.51%.
Deposits reached ₹57.01 lakh crore, up 9.02% year on year, and domestic CASA deposits grew 8.88%. The CASA ratio stood at 39.13% as of December 31, 2025. Management also pointed to a supportive demand backdrop and said recent policy and trade developments could aid credit growth.
Asset quality improved in the quarter. Gross NPAs fell to 1.57% from 2.07% a year earlier, and net NPAs declined to 0.39% from 0.53%. The bank reported a provision coverage ratio of 75.54% (without AUCA) and 92.37% including AUCA.
SBI reported a Q3 slippage ratio of 0.40% and a credit cost of 0.29%. Investors now monitor whether deposit growth keeps pace with credit demand, since system-wide non-food credit growth ran at 14.4% year on year in December 2025. They also watch margin stability around the 3% level as competition for deposits continues.