SBI shares plunge 7% after Q4 operating profit falls 16% YoY, NIMs contract 21 bps

Shares of State Bank of India (SBI) plunged 7% to hit an intraday low of Rs 1,017.10 on the NSE on Friday after the lender reported margin pressure and weaker operating performance in its March quarter earnings.

The country’s largest PSU bank saw its net interest margins (NIMs) contract both year-on-year (YoY) and sequentially, while net interest income (NII) declined 1.4% quarter-on-quarter. SBI also reported a fall in operating profit for Q4FY26.
The NIMs in the quarter under review stood at 2.93%, falling 21 bps YoY and 18 bps QoQ.


The operating profit stood at Rs 27,704 crore, falling 16% YoY and 11.5% QoQ versus Rs 31,286 crore in Q4FY25 and Rs 32,862 in Q3FY26.

The PSU lender's net interest income (NII) stood at Rs 44,380, sliding 1.35% QoQ. The NII, which is the difference between interest earned and interest expended, rose 4% YoY.

The public sector lender reported a standalone net profit that rose 6% YoY to Rs 19,684 crore in the fourth quarter. The same stood at Rs 18,643 crore in the same quarter last year. The profit beat the analysts' estimates of Rs 18,898 crore.

Further, the lender's central board has declared a dividend of Rs 17.35 per share for the financial year ended March 2026. The record date for the same is fixed as May 16.

For FY26, SBI posted net profit of Rs 80,032 crore, up 12.88% from Rs 70,901 crore in FY25. Operating profit for the year rose 11.25% to Rs 1.23 lakh crore, while NII increased 4.08% to Rs 1.73 lakh crore. The bank’s return on assets stood at 1.12% and return on equity at 18.57% for FY26.

Gross advances rose 17% YoY to Rs 49.32 lakh crore as of March 2026. Domestic corporate advances grew 15% to Rs 14.24 lakh crore, while domestic retail personal advances rose 15% to Rs 17.35 lakh crore. Home loans grew 14% to Rs 9.44 lakh crore.

Deposits rose 11% YoY to Rs 59.75 lakh crore. Domestic CASA deposits increased 10% to Rs 22.62 lakh crore, while domestic term deposits grew 12% to Rs 34.7 lakh crore. CASA ratio stood at 39.46% as of March 2026.

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