SBI Digital Platform: Indian banking giant, State Bank of India (SBI), recently created a stir on Dalal Street with its third quarter (Q3 FY26) results. The bank’s net profit increased 24.5% year-on-year to a record ₹21,028 crore. Following this impressive performance, SBI surpassed IT giant TCS in terms of market cap, becoming India’s fourth most valuable listed company. The biggest question on investors’ minds now is: Is there still an opportunity to invest in SBI after reaching the ₹1,180 mark.
Digital Revolution
SBI’s digital platform, YONO, has emerged as a major pillar of its success. According to the bank’s Chairman, C.S. Shetty, approximately 96.5 million registered users are currently taking advantage of YONO. Significantly, 68% of savings accounts opened in the third quarter were opened through YONO alone.
The bank has now launched ‘YONO 2.0,’ which is not only for existing customers but also has the potential to attract non-SBI customers. The share of digital transactions has now reached 98.6%, significantly reducing the bank’s operational costs. The bank aims to increase its digital support staff to 10,000 by March 2026 to further accelerate digital migration.
Credit Growth and Loan Pipeline
Management’s confidence following the results is reflected in the fact that they have increased their credit growth guidance for FY2026 from 13% to 15%.
Corporate Loan Pipeline
The bank has a strong corporate pipeline of ₹7.9 lakh crore, coming from sectors such as infrastructure, oil and gas, and metals.
Sector-wise growth
The SME segment saw an impressive growth of 21% and agricultural loans of 16.6%, indicating that the bank’s growth is not limited to large industries.
Asset Quality
SBI’s gross NPAs fell to 1.57% and net NPAs to 0.39%, the lowest level in the last two decades.
Brokerage Opinion
Following the results, leading global and domestic brokerage houses have become even more bullish on SBI. Motilal Oswal and Jefferies have given a target price of ₹1,300 for the stock, while some analysts believe it could reach ₹1,305 in the next 12 months. Brokerage houses believe that the bank’s return on assets (RoA) will remain above 1.1%, which is positive for its long-term sustainability.
Should you buy this stock
SBI is no longer just a “government bank,” but is acting like a “fintech giant.” Low NPAs, strong digital presence, and excellent loan growth make it a “must-hold” stock. However, investors should keep in mind that the stock has already run up significantly, so it may be wise to make fresh purchases on any significant decline.