State Bank of India (SBI), the country’s largest lender, delivered its highest-ever quarterly profit, supported by strong credit demand, healthy deposit mobilisation and continued improvement in asset quality. SBI beat street expectations in the December 2026 quarter, reporting a 24.5% year-on-year rise in net profit to Rs 21,028 crore (Rs 16,891 crore Q3FY25), sharply ahead of Bloomberg’s estimate of Rs 17,800 crore. On a sequential basis (Q-o-Q), the bank posted a profit growth of 4.3% from Rs 20,160 crore as on the quarter ended September (Q2FY26). “Our performance this quarter is the outcome of multiple levers firing together—healthy NII growth, strong fee income, disciplined cost management and a resilient asset quality profile. Even without the one-off dividend, the core engine of the bank is performing consistently, and that gives us confidence in the sustainability of our earnings,” said C S Setty, Chairman, SBI. The bank received a one-time dividend of Rs 2,200 crore from SBI Mutual Fund.