State Bank of India (SBI) said it does not expect the Reserve Bank of India (RBI) to cut interest rates before March 2026, indicating continued monetary policy stability amid inflation and global uncertainties. The commentary accompanied the lender’s September-quarter earnings, which showed resilient growth and improved asset quality.
India’s largest lender posted a 10% year-on-year rise in net profit to Rs 20,160 crore, beating the street estimate of Rs 17,048 crore. Net Interest Income (NII) increased 3% YoY to Rs 42,985 crore, versus the CNBC-TV18 poll estimate of Rs 40,766 crore, supported by steady loan growth and strong core operations.
Asset quality improved as Gross NPA fell to 1.73% from 1.83% in June, while Net NPA declined to 0.42% from 0.47%. Fresh slippages eased to Rs 4,800 crore against Rs 7,900 crore in the previous quarter. The slippage ratio improved by 6 bps YoY, standing at 0.45% for Q2 FY26.
SBI also revised its business guidance for the remainder of the fiscal year.
The bank raised its credit growth guidance to 12–14%, up from the earlier 11%, citing sustained demand momentum. It further stated that it expects double-digit corporate loan growth in the second half, driven by strong project pipeline and capital expenditure uptick across sectors.
On the interest rate outlook, SBI management reiterated that the central bank may hold rates steady at least until March, signalling continued focus on inflation management over near-term easing.
Shares of SBI remained volatile post-results and were last seen trading around Rs 949.6.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
