SBI Raises Its Credit Growth Guidance To 14-15% For FY26 Up From 12-13%

"We believe that credit growth will remain robust, and the bank has accordingly revised its guidance to 14-15% for FY26, up from 12-13%," said CS Setty, Chairman of State Bank of India at the press briefing for the bank's Q3 earnings. Setty noted strong credit demand across all major banking segments, adding that SBI continues to see healthy traction in retail loans, MSME financing, and corporate credit pipelines, supported by broad-based economic activity.

Setty highlighted the impact of recent global trade agreements, including the US-India trade deal. "We believe that these trade deals and the Budget announcements are going to be extremely positive for credit growth," he said. He explained that removing tariff overhangs and diversifying export markets strengthens corporate confidence and opens new avenues for lending across multiple sectors.

According to Setty, the India-US trade deal is expected to unlock fresh opportunities for exporters and multinational supply chains, which could translate into stronger corporate lending and higher working-capital demand in the coming quarters.

SBI's net interest income (NII) grew 9% year-on-year to Rs 45,190 crore, supported by an expanding loan book. Net interest margin (NIM) rose 2 basis points sequentially to 2.99% and is expected to move above 3% in the next quarter, Setty added.

The Chairman also pointed to structural shifts in how Indian households save. "We remain mindful of the shift of household savings toward financial markets," he said. While acknowledging this poses long-term challenges for deposit mobilisation, Setty noted that strong current account growth and healthy savings mobilisation continue to support balanced funding costs without undue pressure on margins.

Record Profit Backed by Strong Loan Demand

SBI reported a standalone net profit of Rs 21,028 crore for Q3 FY26-a 24.5% year-on-year jump from Rs 16,891 crore-marking the highest quarterly profit in the bank's history. Operating profit rose sharply by 39.5% year-on-year to Rs 32,862 crore, driven by broad-based income growth and improved recoveries.

"Our focus remains on growth that is profitable, well-capitalised, and prudently risk-managed," Setty said. He highlighted strong loan demand across retail, MSME, agriculture, and corporate segments as a major driver of the bank's performance. Total business-combining deposits and advances-crossed Rs 103 lakh crore, underscoring SBI's scale and continued customer trust.

Asset Quality: Gross and Net NPA Trends

SBI continued to strengthen its asset quality even as lending expanded.

• The Gross NPA ratio improved to 1.57%, among the lowest in recent decades.
• The Net NPA ratio fell to 0.39%, also at multi-year lows.

Setty noted that these improvements reflect disciplined credit practices, rigorous underwriting, and sustained recovery efforts.

Deposits, Funding, and Debt Market Plans

SBI's deposits grew 9.02% year-on-year to Rs 57 lakh crore, reflecting strong customer balances despite rising competition from market-linked savings instruments. Retail term deposits rose 14.54%, while current accounts increased 10.32%, signalling healthy funding diversification.

Looking ahead, Setty said SBI plans to tap the debt market in FY27-along with deposit mobilisation-to diversify its funding mix and support future credit growth in a sustainable manner.

Setty emphasised that the bank's long-term priorities remain centred on quality growth, capital efficiency, strong risk governance, and digital acceleration. "Our approach is forward-looking, anticipating change rather than reacting to it," he said, expressing confidence in SBI's ability to deliver stronger loan growth while sustaining asset quality and profitability.

ALSO READ: SBI Q3 Results: Net Profit Soars 24.5%, NII Up 9% YoY; Asset Quality Improves

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.