Shares of State Bank of India (SBI) surged nearly 7% on Monday, hitting a record high, after the country’s largest public sector lender posted its highest-ever quarterly profit for Q3 of FY26.
SBI reported a net profit of ₹21,277 crore for the October–December period, up 24.5% year-on-year from ₹17,073 crore in the same quarter last year. Analysts attributed the growth to strong net interest income, improved asset quality, and disciplined risk management.
The bank’s net interest income (NII), which reflects core lending performance, rose by 9% to ₹45,323 crore. Non-interest income, which includes fees and trading gains, also contributed positively, amounting to ₹12,000 crore, marking a healthy year-on-year increase.
SBI’s asset quality improved significantly, with gross non-performing assets (GNPA) declining to 3.12% from 3.35% in the previous quarter. Provisions for bad loans also decreased, allowing the bank to post stronger profitability.
On the loan growth front, SBI reported a 13% increase in advances, with broad-based growth across corporate, retail, and small-business segments. The bank’s management raised its loan growth guidance for FY26 to 13–15%, signaling confidence in sustained credit demand.
The strong results led brokerages including Jefferies, Morgan Stanley, and BofA Securities to upgrade SBI’s stock. Price targets were raised, with some suggesting a potential upside of up to 14% from current levels. Most analysts maintained a “Buy” or “Outperform” rating, citing strong earnings momentum and improved fundamentals.
Investors responded positively to the earnings announcement, driving the stock to its all-time high of ₹1,145 per share during the trading session.