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Sat, 05 Sept 2026
08:15:19 am
Sat, 05 Sept 2026
08:15:19 am
Rudransh Sangwan
Published at: May 8, 2026, 9:41 AM
Synopsis
SBI reported a strong Q4 FY26 performance with net profit rising 6% YoY to ₹19,684 crore, beating estimates. The bank announced a ₹17.35 dividend, improved asset quality, and crossed ₹109 lakh crore in total business despite margin pressure.
India’s largest public sector lender, State Bank of India (SBI), reported a strong set of fourth-quarter earnings for FY26, with standalone net profit rising 6% year-on-year to ₹19,684 crore, beating Street estimates and reinforcing the bank’s leadership position in the Indian banking sector.
Despite softer margins and a decline in operating profit, SBI delivered solid growth in advances, improved asset quality, lower provisions, and healthy full-year profitability.
The bank also announced a dividend of ₹17.35 per share for FY26.
| Particulars | Q4 FY26 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Net Profit | ₹19,684 Cr | ₹18,643 Cr | +6% |
| Net Interest Income (NII) | ₹44,380 Cr | ₹42,775 Cr* | +4% |
| Operating Profit | ₹27,704 Cr | ₹31,286 Cr | -11% |
| Gross NPA Ratio | 1.49% | 1.82% | Improved |
| Net NPA Ratio | 0.39% | 0.47% | Improved |
| Dividend | ₹17.35/share | — | Announced |
*Approximate previous-year NII based on reported growth.
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Analysts had estimated SBI’s quarterly profit at around ₹18,898 crore, but the lender outperformed expectations with a profit of ₹19,684 crore.
The earnings boost was largely driven by:
SBI’s net interest income (NII), a key profitability metric for banks, rose 4% year-on-year to ₹44,380 crore during the March quarter.
However, the bank witnessed pressure on margins due to higher funding costs and changing interest rate dynamics.
| Metric | Q4 FY26 |
|---|---|
| Domestic NIM | 2.93% |
| Whole Bank NIM | 2.81% |
| FY26 Domestic NIM | 3.03% |
Domestic net interest margin (NIM) declined by 21 basis points year-on-year, indicating some compression in lending spreads.
While SBI reported strong bottom-line growth, operating profit declined 11% YoY to ₹27,704 crore.
The fall was mainly linked to:
Despite this, lower provisions helped protect overall profitability.
One of the biggest positives in the quarter was the sharp decline in provisioning expenses.
| Particulars | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Total Provisions | ₹2,872 Cr | ₹6,442 Cr |
| NPA Provisions | ₹3,140 Cr | ₹3,964 Cr |
The lower provisioning burden reflects improving asset quality and healthier loan recoveries.
SBI reported another quarter of strong asset quality improvement.
| Metric | FY26 | FY25 |
|---|---|---|
| Gross NPA Ratio | 1.49% | 1.82% |
| Net NPA Ratio | 0.39% | 0.47% |
| Provision Coverage Ratio | 74.36% | — |
| PCR Including AUCA | 91.97% | — |
Gross NPAs declined to ₹73,452 crore, while net NPAs fell to ₹18,830 crore.
The improvement signals stronger balance sheet quality and better recovery trends across loan categories.
The bank’s total business crossed ₹109 lakh crore during FY26.
| Particulars | FY26 |
|---|---|
| Total Business | ₹109 Lakh Cr |
| Total Deposits | ₹59.75 Lakh Cr |
| Gross Advances | ₹49.32 Lakh Cr |
| Segment | Growth |
|---|---|
| Gross Advances | +17% |
| Corporate Advances | +15% |
| Retail Personal Loans | +15% |
| Home Loans | +14% |
The strong retail and corporate loan growth highlights continued credit demand in the Indian economy.
SBI also reported stable deposit growth across CASA and term deposits.
| Deposit Type | Growth |
|---|---|
| Total Deposits | +11% |
| CASA Deposits | +10% |
| Term Deposits | +12% |
The CASA ratio stood at 39.46% at the end of FY26.
For the full financial year FY26, SBI delivered another strong performance.
| Particulars | FY26 | YoY Growth |
|---|---|---|
| Net Profit | ₹80,032 Cr | +12.88% |
| Operating Profit | ₹1.23 Lakh Cr | +11.25% |
| NII | ₹1.73 Lakh Cr | +4.08% |
The bank also reported:
Interestingly, SBI shares declined nearly 7% after the earnings announcement despite strong profits.
| Concern | Impact |
|---|---|
| Margin Compression | Negative sentiment |
| Lower Operating Profit | Pressure on valuations |
| Profit Booking | After recent rally |
| NIM Outlook Concerns | Banking sector weakness |
Markets appeared more concerned about future margin trends rather than headline profit growth.
Going forward, investors will closely monitor:
SBI delivered another strong quarter with robust profitability, healthy loan growth, improving asset quality, and lower provisions. The bank’s annual profit crossing ₹80,000 crore further reinforces its dominance in India’s banking sector.
However, margin pressure remains a key concern for investors, especially in a changing interest rate environment.
While the stock corrected after the results, SBI’s improving balance sheet strength, strong retail franchise, and continued business expansion suggest the long-term growth story remains intact for India’s largest lender.
State Bank of India (SBI) reported a standalone net profit of ₹19,684 crore in Q4 FY26, marking a 6% year-on-year increase compared to ₹18,643 crore in the same quarter last year.
Yes, SBI announced a dividend of ₹17.35 per equity share for FY26. The record date for the dividend has been fixed as May 16, 2026.
SBI shares declined after the results mainly due to concerns around margin compression, lower operating profit, and cautious outlook on net interest margins (NIMs), despite strong profit growth and improved asset quality.
SBI’s net interest income (NII) increased 4% year-on-year to ₹44,380 crore during Q4 FY26.
SBI’s Gross NPA ratio improved to 1.49% in Q4 FY26 from 1.82% a year ago, reflecting stronger asset quality and lower bad loans.
For the full financial year FY26, SBI reported:
The key drivers behind SBI’s earnings growth were:
Investors and analysts are closely monitoring:
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