State Bank of India (SBI), the country's largest lender, posted a 5.6% year-on-year increase in its standalone net profit for the fourth quarter of fiscal 2025-26, reaching Rs 6,451 crore. The bank's net interest income (NII) rose by 12.3% to Rs 18,888 crore, supported by robust loan growth and stable margins.
Key Financial Highlights
For the quarter ended March 31, 2026, SBI's net profit stood at Rs 6,451 crore, compared to Rs 6,111 crore in the same period last year. The bank's operating profit increased by 9.8% to Rs 22,345 crore. Provisions and contingencies declined by 15.2% to Rs 9,874 crore, aiding profitability.
Asset Quality Improves
SBI's asset quality showed improvement, with gross non-performing assets (NPAs) ratio falling to 2.24% from 2.78% a year ago. Net NPAs declined to 0.57% from 0.73%. The provision coverage ratio stood at 87.5% as of March 31, 2026.
Loan Growth and Margins
The bank's domestic loan book expanded by 14.7% year-on-year, driven by growth in retail, agriculture, and MSME segments. Net interest margin (NIM) improved to 3.15% from 3.02% in the previous year. SBI's total deposits grew by 11.2%, with current account savings account (CASA) ratio at 42.3%.
Other Income and Capital Adequacy
Non-interest income rose by 8.4% to Rs 8,567 crore, led by higher fee income and treasury gains. Capital adequacy ratio as per Basel III norms stood at 13.8%, well above the regulatory requirement. The bank's board recommended a dividend of Rs 11.50 per share for the fiscal year.
SBI's managing director stated that the bank remains focused on maintaining asset quality and improving operational efficiency. The lender aims to sustain loan growth momentum while managing costs effectively. Analysts expect SBI to continue benefiting from strong credit demand and stable margins in the coming quarters.
