Shares of State Bank of India (SBI), the largest lender in India, dropped 10% over two days, reaching a low of ₹984 on the Bombay Stock Exchange (BSE) after the bank announced its Q4 earnings. The bank reported a 6% year-on-year increase in standalone net profit to ₹19,684 crore for the March quarter, compared to ₹18,643 crore in the same period last year. Net interest income (NII) rose 4% to ₹44,380 crore, but the bank faced margin pressures, with domestic net interest margin falling to 2.93%, down 21 basis points year-on-year. Despite these challenges, SBI's provisions for non-performing assets decreased significantly, indicating improved asset quality. Analysts have mixed views on the stock's future; Bernstein maintains an “Outperform” rating with a target price of ₹1,300, while Citigroup has a “Buy” rating but reduced its target to ₹1,230. Morgan Stanley is more cautious, lowering its target to ₹980 and expressing concerns over net interest income and margins. Overall, while SBI's loan growth remains robust at 17%, the bank's ability to maintain margins will be crucial for its recovery.