SBI Chairman CS Setty termed the India-US trade deal and other FTAs 'extremely positive' for the economy. He also welcomed the RBI's unchanged repo rate. Meanwhile, SBI reported its highest-ever quarterly net profit of Rs 21,028 crore in Q3FY26.
State Bank of India (SBI) Chairman CS Setty on Saturday said the India-US trade agreement, along with the other recently concluded Free Trade Agreements (FTAs) are extremely positive for the Indian economy.
While responding to a question by ANI on the India-US trade deal at a press conference, Setty said, "It's not only the India-US deal, but also other trade deals, whether it is with the EU or the FTA with the UK in the past, all these are extremely positive for the Indian economy."
"One big positive development is that there's no overhang of tariffs," he said, adding that the agreement opens up significant opportunities for both corporates and micro, small and medium enterprises (MSMEs) to integrate with global supply chains.
On RBI's Monetary Policy
Further, on the Reserve Bank of India's (RBI) decision to keep the repo rate unchanged, Setty said, it was largely on expected lines, adding that the central bank's stance on liquidity management has boosted confidence in the banking system.
"On the repo rate, I think it was broadly on the expected lines. Obviously, the pause was widely anticipated, and we are happy with that," Setty said.
Commenting on liquidity conditions, he noted that system liquidity is currently adequate and in surplus. He added that the RBI Governor's assurance of a pre-emptive approach to liquidity management would ensure smooth credit flow.
"That gives us great confidence that liquidity will not be constrained for any credit growth going forward," he said.
SBI's Record Q3FY26 Performance
State Bank of India reported strong performance across key financial and operational parameters, with total business exceeding Rs 103 trillion in the third quarter of Financial Year 2026.
The country's largest lender said deposits and advances stood at over Rs 257 trillion and Rs 46 trillion, respectively, while its SME portfolio crossed Rs 6 trillion, reflecting robust credit growth across segments.
Profitability and Margins
SBI posted its highest-ever quarterly net profit of Rs 21,028 crore in Q3FY26, registering a year-on-year growth of 24.49 per cent. Operating profit for the quarter surged 39.54 per cent YoY to Rs 32,862 crore.
For the nine months ended FY26, the bank's return on assets (ROA) and return on equity (ROE) stood at 1.16 per cent and 20.68 per cent, respectively. Net Interest Income (NII) for Q3FY26 rose 9.04 per cent YoY. Whole Bank and domestic net interest margins (NIM) for 9MFY26 were at 2.95 per cent and 3.08 per cent, respectively, while Q3FY26 NIM stood at 2.99 per cent for the whole bank and 3.12 per cent domestically.
Robust Growth in Advances
Whole Bank advances grew 15.14 per cent YoY, led by domestic advances growth of 15.44 per cent. Advances from foreign offices rose 13.41 per cent YoY. Retail advances increased 16.51 per cent YoY, with double-digit growth across all segments. SME advances grew by a sharp 21.02 per cent YoY, followed by agriculture advances at 16.56 per cent and retail personal advances at 14.95 per cent. Corporate advances recorded a YoY growth of 13.37 per cent.
Liabilities and Deposits
On the liabilities side, Whole Bank deposits grew 9.02 per cent YoY. CASA deposits rose 8.88 per cent YoY, with the CASA ratio standing at 39.13 per cent as of December 31, 2025. Retail term deposits grew 14.54 per cent YoY.
Improved Asset Quality
Asset quality continued to improve, with the gross NPA ratio declining by 50 basis points YoY to 1.57 per cent. Net NPA ratio improved by 14 basis points to 0.39 per cent. The provision coverage ratio (PCR) increased by 88 basis points YoY to 75.54 per cent, while PCR including AUCA stood at 92.37 per cent, up 63 basis points YoY. Slippage ratio for 9MFY26 improved by 5 basis points YoY to 0.54 per cent, while Q3FY26 slippages stood at 0.40 per cent. Credit cost for the quarter was contained at 0.29 per cent.
Capital Adequacy and Digital Push
The bank's capital adequacy ratio (CAR) stood at 14.04 per cent at the end of Q3FY26.
SBI also highlighted continued traction in digital adoption. More than 68 per cent of savings bank accounts were opened digitally through YONO during Q3FY26. The share of alternate channels in total transactions increased to 98.6 per cent in 9MFY26 from 98.1 per cent in the corresponding period last year.
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)
