/images/ppid_59c68470-image-177048004647376642.webp)
What is the story about?
State Bank of India on Saturday, February 7, raised its FY26 credit growth guidance to 13–15% from 12–14% earlier, after reporting a strong December-quarter performance that saw net profit jump 24.5% year-on-year to ₹21,028 crore, comfortably beating market expectations.
Speaking to CNBC-TV18, SBI Chairman C S Setty said the bank delivered an “exceptional quarter”, with momentum visible across asset quality, margins and business growth. Net interest income (NII) rose 9% YoY to ₹45,190 crore, also ahead of estimates, driven by broad-based loan growth across retail, agriculture, MSME and corporate segments.
Setty said the upgrade in guidance reflects stronger-than-anticipated traction in lending. Corporate credit growth rebounded to around 13%, well above the bank’s earlier expectation of 10–11%, while every segment within RAM posted double-digit growth. “Business growth was not restricted to one particular segment. It was holistic,” he said, adding that RAM would continue to do the heavy lifting even as corporate demand remains firm.
The chairman highlighted improving asset quality, with gross NPAs declining to 1.57% from 1.73% sequentially, and net NPAs easing to 0.39% from 0.42%. Absolute gross NPAs fell to ₹73,636.8 crore, while net NPAs declined to ₹18,012 crore. Slippages for the quarter remained contained at 0.40%, while provisions dropped to ₹4,506 crore from ₹5,400 crore in the September quarter.
SBI reported a net interest margin (NIM) of 3.12%, marginally lower on a year-on-year basis, but Setty reiterated the bank’s guidance of around 3% NIM for FY26, alongside a credit cost guidance of 50 basis points. “There are not going to be any surprises on the asset quality side,” he said.
Deposit mobilisation remains a key focus area, with the bank targeting 9–10% deposit growth in FY26. Setty said SBI is consciously shifting away from high-cost wholesale deposits towards retail term deposits and low-cost CASA. Despite a challenging environment, the bank recorded 10% growth in current account balances, reinforcing the effectiveness of its branch-level engagement strategy.
On MSMEs, Setty said SBI is seeing around 18% growth in the segment, supported by better data availability and improved underwriting models. He added that recent trade deals and a more positive investment climate should benefit both corporates and downstream MSME industries, helping sustain growth momentum.
Net profit growth in Q3, Setty said, was driven by a combination of higher operating income and moderating operating expenses. Even excluding the one-off special dividend received from SBI Mutual Fund, profitability remained strong, he added, describing the dividend as part of capital optimisation efforts.
“With the positives from policy support, trade developments and internal strengths, the bank is well positioned to sustain this growth momentum,” Setty said.
Shares of SBI closed 1,066 on Friday, ahead of the result announcement. The stock has gained 32.40% in the past six months.
Speaking to CNBC-TV18, SBI Chairman C S Setty said the bank delivered an “exceptional quarter”, with momentum visible across asset quality, margins and business growth. Net interest income (NII) rose 9% YoY to ₹45,190 crore, also ahead of estimates, driven by broad-based loan growth across retail, agriculture, MSME and corporate segments.
Setty said the upgrade in guidance reflects stronger-than-anticipated traction in lending. Corporate credit growth rebounded to around 13%, well above the bank’s earlier expectation of 10–11%, while every segment within RAM posted double-digit growth. “Business growth was not restricted to one particular segment. It was holistic,” he said, adding that RAM would continue to do the heavy lifting even as corporate demand remains firm.
The chairman highlighted improving asset quality, with gross NPAs declining to 1.57% from 1.73% sequentially, and net NPAs easing to 0.39% from 0.42%. Absolute gross NPAs fell to ₹73,636.8 crore, while net NPAs declined to ₹18,012 crore. Slippages for the quarter remained contained at 0.40%, while provisions dropped to ₹4,506 crore from ₹5,400 crore in the September quarter.
SBI reported a net interest margin (NIM) of 3.12%, marginally lower on a year-on-year basis, but Setty reiterated the bank’s guidance of around 3% NIM for FY26, alongside a credit cost guidance of 50 basis points. “There are not going to be any surprises on the asset quality side,” he said.
Deposit mobilisation remains a key focus area, with the bank targeting 9–10% deposit growth in FY26. Setty said SBI is consciously shifting away from high-cost wholesale deposits towards retail term deposits and low-cost CASA. Despite a challenging environment, the bank recorded 10% growth in current account balances, reinforcing the effectiveness of its branch-level engagement strategy.
On MSMEs, Setty said SBI is seeing around 18% growth in the segment, supported by better data availability and improved underwriting models. He added that recent trade deals and a more positive investment climate should benefit both corporates and downstream MSME industries, helping sustain growth momentum.
Net profit growth in Q3, Setty said, was driven by a combination of higher operating income and moderating operating expenses. Even excluding the one-off special dividend received from SBI Mutual Fund, profitability remained strong, he added, describing the dividend as part of capital optimisation efforts.
“With the positives from policy support, trade developments and internal strengths, the bank is well positioned to sustain this growth momentum,” Setty said.
Shares of SBI closed 1,066 on Friday, ahead of the result announcement. The stock has gained 32.40% in the past six months.
