State Bank of India Reports 6% Q4 Profit Growth Amid Rising Bond Yields
SBI Q4 profit rises 6%, investors cautious over bond yield impact
The Economic Times
Image: The Economic Times
State Bank of India (SBI) reported a 6% increase in net profit for Q4 FY26, reaching ₹19,684 crore despite pressures from rising bond yields and treasury losses. The bank expects credit growth of 13% to 15% for FY27, aided by a strong corporate loan pipeline.
- 01SBI's Q4 net profit rose to ₹19,684 crore, a 6% increase from the previous year.
- 02The bank's net interest margin (NIM) fell to 2.93%, down from 3.14% a year ago.
- 03SBI expects credit growth between 13% to 15% for the current fiscal year.
- 04The bank reported treasury losses of ₹4,500 crore in Q4 FY26.
- 05SBI's net non-performing assets (NPA) ratio improved to 0.39%.
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State Bank of India (SBI) achieved a 6% increase in net profit for the fourth quarter of FY26, totaling ₹19,684 crore, despite facing challenges from rising bond yields that led to treasury losses. The bank's annual profit reached ₹83,299 crore, marking it as the second-highest in India after Reliance Industries. SBI's net interest income (NII) rose by 4% to ₹44,380 crore, supported by robust loan growth in both corporate and retail sectors, each growing by 15%. However, the bank's net interest margin (NIM) declined to 2.93%, down from 3.14% the previous year, reflecting pressure on yields. SBI Chairman CS Setty remains optimistic about achieving 13% to 15% credit growth in FY27, backed by a strong corporate loan pipeline of ₹5.5 lakh crore. Despite treasury losses of ₹4,500 crore, the bank's asset quality improved, with net NPA ratio dropping to 0.39%. SBI declared a dividend of ₹17.35 per equity share for the financial year ended March 2026.
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SBI's performance affects loan availability and interest rates for borrowers, impacting homebuyers and businesses seeking loans.
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