STATE BANK OF INDIA REG S INDIA GDR

Strong quarter & profitability leap (headline beats): - Highest ever quarterly net profit: ₹21,028 cr (+24.49% YoY). - Operating profit: ₹32,862 cr (+39.54% YoY). - Net interest income (NII): ₹45,190 cr (+9% YoY). - Domestic NIM: 3.12% for the quarter. - One key “not fully comparable” item (surprising/important): prior quarter’s exceptional profit from Yes Bank share sale; management indicated Q3 profit still matched Q1/Q2 levels despite the lack of that tailwind, implying underlying performance strength.

Asset quality remains best-in-class (lower risk even with growth): - Gross NPA: 1.57% (improved by 50 bps YoY). - Net NPA: 0.39% (improved by 14 bps YoY). - PCR: 75.54% (+88 bps YoY). - Management stressed NPA is at lowest level in 2+ decades and that credit underwriting + recoveries are driving resilience.

Growth outlook: credit guidance revised upward; profitability guidance largely maintained: - Credit growth guidance revised upward: from ~12–14% to ~13–15% for FY’26 (management said they’ll give full-year guidance at Q1). - Demand backdrop improving from budget capex, trade deal positives, GST/tax measures, and SBI positioning in MSME + sunrise sectors (Chakra). - Management claimed corporate growth can be sustained without NIM drag due to risk-based pricing + ecosystem banking and controls (e.g., “22-item checklist” on underwriting/engagement factors).