State Bank of India (SBI) Q4 earnings: Net profit rises 5.6% to ₹19,684 crore, NII advances 4% to ₹44,380 crore

State Bank of India (SBI) shares came under intense selling pressure in noon deals on Friday, May 8, after its fourth quarter earnings announcement failed to impress investors. SBI shares fell as much as 7.43% to hit an intraday low of ₹1,010.90 on the National Stock Exchange (NSE). On the BSE, SBI dropped 7.37% to ₹1,011, posting its worst single-day drop in over six years.

The country's largest lender reported a net profit of ₹19,684 crore in the fourth quarter for financial year 2025-26 (Q4FY26), marking an increase of 5.6% from ₹18,643 crore in the same period last year. The nominal rise in profit came despite sharply lower provisions from bad loans during the quarter. The bank's provisions declined by 21% to ₹3,140 crore compared with ₹3,964 crore in the year-ago period.

For financial year 2025-26, its net profit stood at ₹80,032 crores witnessing an annual growth of 12.88%.

SBI's net interest income (NII) or the difference between interest earned on loans and expended on deposits rose 4% to ₹44,380 crore at the end of March quarter from ₹42,617.84 crore in the corresponding period last year.

Whole bank and domestic net interest margin (NIM) for FY26 came in at 2.91% and 3.03% respectively and whole bank NIM for fourth quarter stood at 2.81% and domestic NIM at 2.93%.

Asset quality of the country's largest lender remained stable at the end of fourth quarter as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 1.49% as against 1.82% in the year-ago period and 1.57% in the previous quarter.

In absolute terms, SBI's gross NPA came in at ₹18,830 crore compared with ₹19,667 crore last year.

SBI's total business crossed ₹109 lakh crore, deposits and advances came in at ₹59.8 lakh crore and ₹49.3 lakh crore respectively and agri portfolio crossed ₹4 lakh crore.

The Mumbai-based lender's retail loan portfolio advanced 17% annually, with double digit growth in all segments. SME advances rose 21%, retail personal loans portfolio gained 15% and corporate loan book climbed by 14.83%.

The bank in an investor presentation said that its gross advances have grown by 20.01% on YoY basis. External commercial borrowings, local credit and trade finance business are major drivers of customer credit, SBI noted.

As of 2:47 pm, SBI shares traded 5.66% lower at ₹1,030 and was top loser in the NIFTY50 index.