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    St Bk of India

    SBIN
    Financial Services·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

    11

    • 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

    4

    • 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

    Single quarter

    12 metrics
    1. 01Net Profit₹80,032 Cr+12.9%YoY
    2. 02Operating Profit Growth11.3%
    3. 03Domestic NIM3.0%
    4. 04Gross NPA1.5%
    5. 05Net NPA39%

    Capital allocation

    1
    high confidence
    CategoryHeadline
    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.

    Guidance & targets

    11
    CategoryTargetPriority
    Credit Growth
    System Credit Growth
    13-14%
    		High
    Credit Growth
    SBI Credit Growth
    13-15%
    		High
    Credit Growth
    Corporate Credit Growth
    12-13%
    		High
    Deposit Growth
    System Deposit Growth
    11-12%
    		High
    Domestic NIM
    Domestic NIM
    above 3%
    		High
    Credit Cost
    Credit Cost
    50 basis points
    		High
    ROA
    Return on Assets
    greater than 1%
    		High
    ROE
    Return on Equity
    15% minimum
    		High
    Cost-to-Income Ratio
    Cost-to-Income Ratio
    below 50
    		High
    Market Share
    Market Share Increase
    1% every year
    		High
    Products Per Customer (PPC)
    PPC
    5
    		Medium

    Domestic NIM trajectory

    Full year FY27
    Current3.03% (Q4 FY26)
    TargetMaintain 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.

    How to verify

    key_financials.metrics[label='Domestic NIM']

    Risks & concerns

    5
    RiskSeverity

    Geopolitical developments and climate-related disruptions

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

    medium

    Energy price movements and weather-related uncertainties

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

    medium

    Technology risk and advanced AI models exploiting vulnerabilities

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

    medium

    West Asian conflict impact on credit growth and treasury yields

    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

    medium

    Intensifying liability competition

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

    medium

    Q&A highlights

    8

    “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

    3 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.