State Bank of India (SBI) reported a modest 6 per cent year-on-year (yoy) increase in fourth quarter (Q4FY26) standalone net profit at ₹19,684 crore, with the bottomline being supported by a decent growth in net interest income and lower total provisions even as treasury income declined and margins came under pressure.
The stock of India’s largest bank, which reported a net profit of ₹18,643 crore in the year-ago quarter, declined 6.62 per cent to close at ₹1019.55apiece over the previous close on BSE.
The bank's board declared a dividend of ₹ 17.35 per equity share (1735 per cent) for FY26. In FY26, SBI reported a 13 per cent y-o-y increase in standalone net profit at ₹80,032 crore against ₹70,901 crore in FY25.
Challa Sreenivasulu Setty, Chairman, said he retained a 13-15 per cent credit growth for FY27 , with the corporate credit pipeline being strong at ₹5.50 lakh crore and likely demand for loans of up to ₹80,000 crore from MSMEs and the aviation sector under the Government’s Emergency Credit Line Guarantee Scheme.
Referring to SBI’s house view that the repo rate will continue at the same level throughout FY27, Setty said: “We are looking at an asset mix change, especially on the corporate side, because we had some floating rate loans which probably would now run off, and we will have the ability to pass on some of the additional costs which we have on the deposit side.
And on the deposit interest rate side, I don’t think there’s much room in terms of further cutting down. If the continuous credit growth rate is at 13 to 15 per cent, I think none of us in the system would be in a position to cut the deposit rates.”
In the reporting quarter, net interest income (difference between interest earned and interest expended) was up 4 per cent y-o-y to ₹44,380 crore (₹42,618 crore in Q4FY25).
Non-interest income, comprising fee income, treasury income, loan processing charges, commission on government business and letter of credit/ Bank guarantee, among others, declined 29 per cent y-o-y to ₹17,314 crore (₹24,367 crore). Treasury income was down ₹6,209 crore during the reporting quarter as compared to the preceding quarter
Total provisions were down 37 per cent to ₹8,020 crore (₹12,643 crore). Within this loan, loss and income tax provisions were down 21 per cent yoy (at ₹3,140 crore) and 30 per cent (at ₹5,148 crore), respectively.
Net interest margin nudged lower to 2.81 per cent against 2.99 per cent in the year-ago period.
Gross non-performing assets (NPAs) position improved to 1.49 per cent of gross advances as at March-end 2026 against 1.82 per cent as at March-end 2025. Net NPAs position improved too, to 0.39 per cent of net advances against 0.47 per cent.
Gross advances increased by 17 per cent y-o-y to ₹49,32,627 crore as at March-end 2026, mainly on the back of led by SME (20.99 per cent), Agri (19.68 per cent), Retail Personal (15.22 per cent) and corporate (14.83 per cent).
Total deposits rose by 11.03 per cent y-o-y to stand at ₹59,75,642 crore as of March-end 2026. Low-cost CASA (current account, savings account) deposits declined to 39.46 per cent of total deposits against 39.97 per cent in the year-ago quarter.
Published on May 8, 2026