SBI Shares Decline Over 20% Amid Q4 Earnings Concerns; Analysts Maintain Buy Ratings
SBI shares extend fall to 20% from peak after Q4 NIMs contraction rattles investors. What's ahead for investors?
The Economic Times
Image: The Economic Times
Shares of State Bank of India (SBI) have fallen over 20% from their peak of ₹1,235 due to a contraction in net interest margins (NIMs) and a decline in net interest income (NII) reported in Q4 FY26. Despite this downturn, analysts remain optimistic, maintaining buy ratings based on SBI's strong fundamentals.
- 01SBI shares have dropped over 20% from their 52-week high of ₹1,235.
- 02Q4 FY26 earnings showed a contraction in net interest margins and a 1.4% decline in net interest income.
- 03Despite the decline, SBI reported a 6% year-on-year increase in standalone net profit.
- 04Brokerages like HDFC Securities and Axis Securities maintain buy ratings, citing strong fundamentals.
- 05The stock's support level is now around ₹960, with recovery above ₹1,000 seen as crucial for sentiment.
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Shares of State Bank of India (SBI) have seen a significant decline of over 20% from their peak of ₹1,235 following disappointing Q4 FY26 earnings. The bank reported a contraction in net interest margins (NIMs) and a sequential drop in net interest income (NII), which fell by 1.4% quarter-on-quarter to ₹44,380 crore. Despite these challenges, SBI's standalone net profit increased by 6% year-on-year to ₹19,684 crore, exceeding analysts' expectations. Analysts from HDFC Securities and Axis Securities remain optimistic, maintaining their buy ratings and highlighting SBI's strong fundamentals, including healthy loan growth and stable asset quality. They believe that SBI can sustain return on assets (RoA) at around 1.1% and expect the bank to benefit from improved operational efficiency and credit expansion. The stock's support level is now around ₹960, with recovery above ₹1,000 seen as essential for restoring positive sentiment.
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The decline in SBI shares may affect investor confidence and could lead to profit booking among shareholders. However, the bank's strong fundamentals may provide reassurance for long-term investors.
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