State Bank of India — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

State Bank of India reported a strong Q4 FY26, achieving record net profit of Rs 80,032 crores, up 12.88% YoY, driven by robust operating profit growth of 11.25%. The bank maintained a domestic NIM of 3.03% and demonstrated resilient deposit growth of 11.03% and credit growth of 16.87%. Asset quality significantly improved with Gross NPAs at 1.49% and Net NPAs at 0.39%, while capital adequacy remained strong at 15.4% CAR. While QoQ profit saw some impact from treasury losses and overheads, management expressed confidence in the underlying business strength and future outlook.

Highlights

  • Net profit reached a record high at Rs 80,032 crores, up 12.88% YoY.

  • Operating profit grew 11.25% YoY.

  • Domestic NIM at 3.03%, maintaining guidance of above 3%.

  • Total business crossed Rs 109 trillion, and balance sheet size crossed Rs 76 trillion.

  • Resilient deposit growth of 11.03% YoY (Rs 6 trillion), with retail term deposits up 14.77% and savings accounts up 10.6%.

  • Credit growth robust at 16.87% YoY, with all segments registering double-digit growth.

  • Gross NPAs at 1.49% (improved by 33 bps YoY), Net NPA at 0.39% (improved by 8 bps YoY).

  • CAR improved by 115 bps YoY to 15.4%, well above regulatory requirements.

  • ROA consistently greater than 1% and ROE at 18.5% at the end of Q4 FY26.

  • CASA ratio improved by 33 basis points QoQ to 39.46%.

  • Non-governmental current account deposits grew 23% YoY despite overall government current account decline.

Concerns

  • Operating profit and net profit declined QoQ due to treasury operations and increased overheads.

  • Treasury operations resulted in an MTM loss of 4520 crores in Q4, compared to 143 crores in Q3.

  • Global NIM declined around 18 bps QoQ.

  • Government current account deposits declined 21% YoY.

Key financials

  1. Net Profit ₹80,032 Cr +12.9%YoY
  2. Operating Profit Growth 11.3%
  3. Domestic NIM 3%
  4. Gross NPA 1.5%
  5. Net NPA 0.39%
  6. Credit Growth 16.9%
  7. Deposit Growth 11%
  8. CASA Ratio 39.5%
  9. CAR 15.4%
  10. ROE 18.5%
  11. MTM Loss Q4 ₹4,520 Cr
  12. MTM Loss Q3 ₹143 Cr

What they filed

Q1 FY27: revenue up 8.4%, net profit up 13.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,21,045 1,24,654 1,26,840 1,25,729 1,28,040 +6%1,30,386 +5%1,31,080 +3%1,36,240 +8%
Net profit20,565 19,484 20,379 22,121 21,861 +6%22,176 +14%20,508 +1%25,121 +14%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Liquidity Liquidity disclosed CAR improved by 115 basis points year-on-year and stands at 15.4%, which is well above the regulatory requirements. The average LCR for Q4 was approximately 124%. AFS Reserve as of March 31 is 5,136 crores.
    Our CAR has improved by 115 basis points year-on-year and stands at 15.4%, which is well above the regulatory requirements. (Page 5) For the quarter, it was 124 point something, 124 approximately. (Page 12) AFS Reserve, somebody has asked, this 31st March number is 5,136 crores, AFS Reserve. (Page 16)

Guidance & targets

Credit Growth

  • System Credit Growth Credit Growth · FY27 · High confidence 13-14%
    The momentum is continuing in the current financial year, and we expect credit growth at 13% to 14% and deposits at 11% to 12% for FY27 for the system.

    — Mr. C.S. Setty – Chairman, State Bank of India

  • SBI Credit Growth Credit Growth · FY27 · High confidence 13-15%
    I think as it stands, it looks good. Except that how this West Asia conflict, how much it lingers and if we do not factor in that at this moment, I think 13-15% seems to be a feasible option.

    — Mr. C.S. Setty – Chairman, State Bank of India

  • Corporate Credit Growth Credit Growth · FY27 · High confidence 12-13%
    So, that's the reason our corporate guidance is 12 to 13% is what we are looking at. And our 13 to 15% will be primarily driven by the RAM. RAM growth.

    — Mr. C.S. Setty – Chairman, State Bank of India

Deposit Growth

  • System Deposit Growth Deposit Growth · FY27 · High confidence 11-12%
    The momentum is continuing in the current financial year, and we expect credit growth at 13% to 14% and deposits at 11% to 12% for FY27 for the system.

    — Mr. C.S. Setty – Chairman, State Bank of India

Domestic NIM

  • Domestic NIM Domestic NIM · Full year FY27 · High confidence above 3%
    We are still giving a guidance on an annual basis. We are sticking to our NIM of more than 3% for the full year, for the full year.

    — Mr. C.S. Setty – Chairman, State Bank of India

Credit Cost

  • Credit Cost Credit Cost · FY27 · High confidence 50 basis points
    We are sticking to our credit cost guidance of 50 basis points even despite whatever happens on the West Asian conflict.

    — Mr. C.S. Setty – Chairman, State Bank of India

ROA

  • Return on Assets ROA · Through the cycles · High confidence greater than 1%
    Our emphasis has always been on efficiency and return matrix, with ROA consistently greater than 1% and ROE at 18.5% at the end of Q4 FY26.

    — Mr. C.S. Setty – Chairman, State Bank of India

ROE

  • Return on Equity ROE · Through the cycles · High confidence 15% minimum
    Through the cycles we would like to ensure 15% return on equity to our investor's minimum.

    — Mr. C.S. Setty – Chairman, State Bank of India

Cost-to-Income Ratio

  • Cost-to-Income Ratio Cost-to-Income Ratio · FY27 · High confidence below 50
    See, our effort is to keep cost-to-income ratio contained below 50.

    — Mr. C.S. Setty – Chairman, State Bank of India

Market Share

  • Market Share Increase Market Share · Annually · High confidence 1% every year
    Our guidance is that 1% increase in market share, whichever is that, whether you have 10% market share or 60% market share. Every district we would like to grow 1%.

    — Mr. C.S. Setty – Chairman, State Bank of India

Products Per Customer (PPC)

  • PPC Products Per Customer (PPC) · Medium confidence 5

    From 2.5 to 3 today

    So, 3 is okay, but our idea is to take it to 5. And there are customers who tell me that they take about 8 to 10 different products from SBI. So that means there is a potential to go to 8 to 10. But we would be okay if we reach a PPC of 5.

    — Mr. C.S. Setty – Chairman, State Bank of India

What to watch in Q1 FY27

Domestic NIM trajectory

Full year FY27
Current 3.03% (Q4 FY26)
Target Maintain above 3%

Why it matters

Core profitability metric, management reiterated commitment despite Q4 dip.

We are still giving a guidance on an annual basis. We are sticking to our NIM of more than 3% for the full year, for the full year.

Risks & concerns

  • Geopolitical developments and climate-related disruptions

    medium

    IMF projects 3.1% growth in 2026, 3.2% in 2027, but these remain key risks.

    Management acknowledged

  • Energy price movements and weather-related uncertainties

    medium

    Inflation expected at 3.8% near term, 4.6% full year estimate with upward bias due to these factors.

    Management acknowledged

  • Technology risk and advanced AI models exploiting vulnerabilities

    medium

    Technology risk is becoming systemic, requiring coordinated, system-wide resilience frameworks.

    Management acknowledged

  • West Asian conflict impact on credit growth and treasury yields

    medium

    Treasury holds view that bond yields will be in range of 6.75-6.9, unless West Asian conflict creates problems. Credit growth guidance of 13-15% assumes no major impact.

    Management acknowledged

  • Intensifying liability competition

    medium

    Savings increasingly shifting towards market-linked instruments, requiring deepening customer engagement and relevant offerings.

    Management acknowledged

Q&A highlights

8 direct
Q4 Profitability Decline & Treasury Impact Direct
What has not been known to all of us is the yield movement which had definitely impacted the treasury income. But even then, what we realized that, despite the sharp movement in the bond yields, because of our very low exposure to fair value portfolio, our hit has not been very significant. But you are comparing with the Q4 of the previous year, for instance, we have had Rs. 3,800 crores one-time gain on the security receipts. Apart from that, we had positive treasury gains in that quarter. I think overall, we all believe that we have given a good set of numbers for Q4 as well as full year. We stuck to our guidance in terms of 1% ROA and 3% exit NIM. I do not think there was any surprise to us, but I think there is some assessment in terms of what analysts like you have done on the NII part.

Addresses key concerns about QoQ profit decline and asset quality, providing context and reassurance regarding treasury impact and slippages.

Asked by Mr. Ashok Ajmera – Chairman, Ajcon Global

Middle East Exposure & Asset Quality Direct
The Middle East, we have two large offices, Bahrain and DIFC, Dubai. But the other operations are very small Bahrain retail operations and Dubai, we do not have any retail operations at all. So primarily, it is a wholesale book. And out of this, it is predominantly either a bank exposure or a sovereign exposure. In both these cases, we do not see any concern on that.

Clarifies the bank's limited exposure to the Middle East and minimal impact on asset quality from geopolitical events.

Asked by Ms. Mahrukh Adajania – Tara Capital

FY27 NIM Guidance (Domestic vs. Global) & Yield on Advances Direct
So, our guidance is generally domestic. We are not giving wholesale, full bank NIM ever. Because the overseas book is a different creature altogether. We are talking about domestic NIMs. ... Yield on advances probably would have some uptick. What happened in the Q4, apart from the EBLR movement, see your EBLR plus floating rate loans other than MCLR in corporate book was 43% previous year. It has moved to 49%.

Clarifies the scope of NIM guidance and explains the drivers behind the Q4 yield on advances decline, offering a forward-looking view.

Asked by Mr. Jai Mundhra – ICICI Securities

LCR and Regulatory Changes Direct
For the quarter, it was 124 point something, 124 approximately. ... That the liquidity is being consumed, you are growing at 17%. But the current guidelines will give us around 3 to 4% improvement in LCR. ... We would be comfortable around 115 to 120%.

Provides insight into the bank's liquidity position and how new regulatory guidelines are expected to impact LCR positively.

Asked by Mr. Jai Mundhra – ICICI Securities

Loan Processing Fees Growth Direct
This processing fee is not only coming from retail operations. Retail operations, of course, have given a significant uptick in the processing fee. We have seen both in the large corporate, small corporate, MSMEs, everywhere we have readjusted our processing fee. It is not only readjusting the processing fee, not by way of increasing but reducing the concessions.

Highlights a specific revenue driver and a strategic shift in fee income generation, indicating focus on relationship value and efficiency.

Asked by Mr. Pritesh Bumb – DAM Capital

Cost-to-Income Ratio & Opex Bunching Direct
See, our effort is to keep cost-to-income ratio contained below 50. I think this is the guidance which we have given. And we would have had probably ended the year with 48-47%, but for the treasury income not supportive. Otherwise, the costs have been contained both in terms, bunching happens because of the payment cycle which comes through.

Addresses concerns about operational efficiency and cost management, providing context for Q4 trends and future targets.

Asked by Mr. Anand Dama- Emkay Global

MSME Stress & ECLGS Direct
No, 50 basis point credit cost is something what we have been guiding for the last three years. We continue to do that. It is nothing to do with the West Asian conflict but even if some movement is there, we still are sticking to that guidance. ... We have launched BRE, I think we announced in several quarters back as well. This is giving good results. ... We have shifted to predominantly CGTMSE. So, coverage is almost 58% of the universe which is eligible for CGTMSE.

Provides detailed color on MSME asset quality, risk mitigation strategies, and clarifies that credit cost guidance is stable despite potential sector-specific issues.

Asked by Mr. Anand Dama- Emkay Global

Current Account Deposit Growth & Strategy Direct
We had a period end movement in FY25, March 25. We had a significant current account movement because of the government funds release. Those things were not there. And it was a very large amount, almost 50,000 crores, which has come in the last few days of March ‘25. Despite that fund not being available, I think we have done phenomenally well in the current account.

Explains the apparent slowdown in current account growth, highlighting underlying strength in non-governmental segments and strategic focus on value creation.

Asked by Mr. Piran Engineer - CLSA

3 min read 7 chapters

Detailed narrative

Q4 FY26 Performance Highlights

State Bank of India reported a record net profit of Rs 80,032 crores for Q4 FY26, marking a 12.88% year-on-year increase. This was supported by an 11.25% year-on-year growth in operating profit. The domestic Net Interest Margin (NIM) stood at 3.03%, aligning with the bank's guidance to maintain NIM above 3%. The bank's total business crossed the Rs 109 trillion mark, and its balance sheet size reached Rs 76 trillion, reflecting strong market position and customer trust.

Asset Quality and Capital Adequacy

The bank demonstrated robust asset quality, with Gross NPAs improving by 33 basis points year-on-year to 1.49%, and Net NPAs improving by 8 basis points year-on-year to 0.39%. The Provisioning Coverage Ratio (PCR) was 74.36%. Capital Adequacy Ratio (CAR) strengthened by 115 basis points year-on-year to 15.4%, comfortably above regulatory requirements and providing ample headroom for future credit growth. The bank consistently achieved a Return on Assets (ROA) greater than 1% and a Return on Equity (ROE) of 18.5% for Q4 FY26.

Deposit and Credit Growth Dynamics

SBI achieved resilient deposit growth of 11.03% year-on-year, adding approximately Rs 6 trillion. This growth was primarily driven by a 14.77% increase in retail term deposits and a 10.6% growth in savings accounts. Despite a competitive environment, the CASA ratio improved by 33 basis points quarter-on-quarter to 39.46%, reinforcing the bank's low-cost funding advantage. Credit growth was robust at 16.87% year-on-year, with all segments, including RAM (Retail, Agriculture, MSME), registering double-digit growth.

Strategic Focus on Digital Transformation and Efficiency

The bank is undergoing continuous digital transformation, with YONO being central to its strategy, having crossed 10 crore registrations and seeing 66% of new savings accounts originating on the platform. Initiatives like Project Saral are re-engineering operations to simplify customer journeys and enhance relationship building. SBI is also building a digital-native, intelligence-led organization by leveraging analytics 2.0 for decision-making across credit, risk, and customer engagement.

ECL Guidelines and Proactive Risk Management

SBI has prepared its models for the Expected Credit Loss (ECL) guidelines based on draft regulations and is tweaking them for the final guidelines, expecting a smooth transition over the next four years without impacting credit growth or capital ratios. The Emergency Credit Line Guarantee Scheme (ECLGS) is viewed as a proactive measure, with an estimated Rs 70,000-80,000 crores available for MSMEs and non-MSMEs, though only 30-40% is expected to be utilized. The bank maintains its credit cost guidance of 50 basis points, independent of external conflicts.

MSME Portfolio and Mitigation Strategies

While acknowledging potential stress in specific MSME clusters, such as Morbi due to gas affordability issues, the bank's overall credit exposure to these clusters is minimal. To mitigate risks in the MSME portfolio, SBI has implemented initiatives like the Business Relationship Executive (BRE) program, which shows lower delinquencies compared to non-BRE portfolios. Furthermore, the bank has shifted to predominantly CGTMSE-eligible loans, with almost 58% of the eligible universe covered, enhancing recourse and portfolio quality.

Market Share Expansion and Product Per Customer Strategy

SBI aims to increase its market share by 1% annually in every district, with a long-term aspiration to reach 25% of the country's GDP. The bank is also focused on enhancing its 'Products Per Customer' (PPC) ratio, targeting an increase from the current 2.5-3 to 5. This strategy involves redeploying and training branch manpower for upselling and cross-selling, leveraging the bank's diversified customer base and strong brand presence.

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