State Bank of India (SBI) reported a 5.8% increase in standalone net profit to Rs 19,684 crore for the quarter ended March 31, 2026, as margins came under pressure and treasury income declined amid rising bond yields and subdued equity markets. The bank declared a dividend of Rs 17.35 per equity share for the fiscal year 2025-26.
Market Reaction and Guidance
Shares of SBI fell 6.6% to Rs 1,019.6 on the BSE, compared with a 0.7% decline in the benchmark index, reflecting investor concerns over core income growth. Announcing the results, chairman CS Setty said he expected credit growth of 13–15%, but cautioned that if inflation rises beyond 4%, demand for credit in a consumption-led economy like India could be affected. Setty said the bank is looking to improve yields on advances by shifting towards better-yielding loans. He added that the lender has a loan pipeline of Rs 5.5 lakh crore, with corporate capex decisions expected around July after clarity improves.
Income and Margin Details
Net interest income (NII) rose 4.1% to Rs 44,380 crore despite 16% credit growth, as net interest margin (NIM) compressed by 0.2% to 2.9%. Non-interest income fell 29% to Rs 17,314 crore due to a treasury loss of Rs 1,471 crore and a 56% decline in forex income to Rs 1,258 crore. External factors affected other income by around Rs 4,500 crore, while regulatory changes in forex had a limited impact of Rs 57 crore.
Other Banks' Performance
Bank of Baroda
Bank of Baroda reported a record net profit of Rs 5,616 crore for Q4FY26, up 11.2% from Rs 5,048 crore a year ago, driven by higher net interest income and lower tax provisions. Full-year profit crossed Rs 20,000 crore to reach Rs 20,021 crore, a growth of about 2.2%.
Bank of India
Bank of India’s Q4FY26 consolidated net profit rose 18.7% to Rs 3,087.8 crore, while standalone profit increased 14.9% to Rs 3,015.8 crore. Net interest income grew 11% to Rs 6,730 crore, and NIM stood at 2.6%. The bank expects FY27 NIM at 2.7–2.8% despite cost and inflation headwinds.
