SBIN

’s Q4 Profit Rises 6%, Margins Under Pressure

State Bank of India (

), India’s largest lender, reported a 5.6% YoY rise in Q4FY26 net profit to ₹19,684 crore, but earnings fell 6.4% sequentially due to margin compression and treasury losses. Despite muted results, the bank maintained its FY27 credit growth guidance of 13–15%, signaling confidence in domestic demand resilience even as global uncertainties persist. Financial Highlights (Q4FY26 & FY26) Q4FY26 net profit: ₹19,684 crore (+5.6% YoY; –6.4% QoQ). FY26 net profit: ₹80,032 crore (+12.9% YoY; record high). Q4FY26 revenue (NII): ₹44,380 crore (+4.1% YoY; –1.4% QoQ). NIM (Q4FY26): 2.81% vs 2.98% (Q3) and 2.99% (Q4FY25). Dividend: ₹17.35 per share for FY26. Non‑interest income: ₹17,314 crore (–6.7% QoQ; –28.9% YoY). Overseas advances: ₹7.4 trillion (+20% YoY). Key Drivers & Challenges Margin pressure: Elevated cost of funds and treasury losses (₹100 crore MTM hit in Q4; ₹1,000 crore expected in Q1FY27). Credit growth: Maintained at 13–15% for FY27; deposit growth seen at 11–12%. Asset quality: Stable; exposure to aviation and hydrocarbon sectors limited (~2% of total loans). West Asia conflict: Management expects mild but widespread impact if disruptions persist beyond six months. Market Reaction Stock performance: SBI shares fell 6.7% to ₹1,018.40 on NSE; Nifty 50 down 0.62%. Analyst view: Margins below expectations (Bloomberg estimate NIM > 3%), but credit growth outlook remains positive.