State Bank of India (SBI) has announced a 6% increase in its standalone net profit for the fourth quarter ended March 2026, reaching Rs 19,684 crore. This growth was supported by enhanced asset quality and a reduction in bad loans. The country's largest lender had reported a net profit of Rs 18,643 crore in the corresponding quarter of the previous financial year.
Income and Interest Details
Despite the profit rise, SBI's total income declined to Rs 1,40,412 crore in the March quarter from Rs 1,43,876 crore a year ago, as per a regulatory filing. However, interest income increased to Rs 1,23,098 crore from Rs 1,19,666 crore in the same period last year.
Asset Quality Improvement
The bank demonstrated an improvement in asset quality during the quarter. Gross non-performing assets (NPAs) fell to 1.49% of total advances, down from 1.82% as of March 2025. Net NPAs also eased to 0.39% from 0.47%.
Consolidated Performance
On a consolidated basis, SBI posted a marginal rise in net profit to Rs 19,643 crore compared to Rs 19,600 crore in the same period last year. Total income in the consolidated segment increased to Rs 1,81,079 crore from Rs 1,79,562 crore. For the full financial year 2025-26, the bank reported a 13% increase in standalone profit at Rs 80,032 crore, up from Rs 70,901 crore in the previous year.
Dividend Announcement
SBI's board has approved a dividend of Rs 17.35 per equity share (face value Re 1) for FY26. The record date for determining eligibility is May 16, and the dividend payment date is June 4.
Stock Market Reaction
Following the earnings announcement, SBI shares came under pressure, falling nearly 7%. On the BSE, the stock declined by Rs 72.25 (6.62%) to Rs 1,019.55. On the National Stock Exchange, the share dropped by Rs 73.60 (6.74%) to Rs 1,018.40.
Reasons for Decline
The decline was attributed to margin pressure and weaker operating performance during the quarter. Net interest margins (NIMs) stood at 2.93%, down 21 basis points year-on-year and 18 basis points quarter-on-quarter. Operating profit dropped to Rs 27,704 crore, a decrease of 16% year-on-year and 11.5% sequentially from Rs 31,286 crore in Q4FY25 and Rs 32,862 crore in Q3FY26. Net interest income (NII) was Rs 44,380 crore, falling 1.35% quarter-on-quarter, though it rose 4% compared to the same period last year.
