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Shares of State Bank of India, the country’s largest lender, plunged 6.66% to ₹1,019 in Friday's trade, 8 May, hitting their lowest level in a month after the bank’s March quarter performance failed to impress Dalal Street investors.
Friday’s decline also marked one of the sharpest intraday falls seen in the stock in recent times, eroding nearly ₹67,040 crore in market capitalisation and dragging the lender’s valuation below the ₹10 lakh crore mark to ₹9.41 lakh crore.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that the lender has reported a mixed consolidated performance in Q4 FY26, where healthy business growth, stronger balance sheet metrics, and continued improvement in asset quality were partly offset by margin compression and weaker operating profitability, resulting in earnings coming below market expectations.
SBI's share price plunged 7% after its Q4 results because the bank's performance failed to impress investors. Factors contributing to this included margin compression and weaker operating profitability, leading to earnings below market expectations, despite healthy business growth and improved asset quality.
In Q4 FY26, SBI reported a consolidated net profit of ₹19,684 crore, a 5.58% year-on-year growth. The net interest income (NII) for the quarter increased by 4.13% year-on-year to ₹44,380 crore.
SBI's asset quality continued to improve in the March quarter. The Gross NPA ratio declined to 1.49%, and the Net NPA remained low at 0.39%. The credit cost moderated to 0.27%, though slippages saw a slight increase to 0.47%.
Technically, SBI shares appear weak, showing fading upward momentum. Key support is seen around the 50-week EMA near ₹972. A sustained close above recent swing highs would be needed to negate the current bearish setup, while a breakdown below ₹972 could accelerate the downside.
Yes, SBI announced a dividend of ₹17.35 per share for the financial year ended March 31, 2026. The record date for dividend eligibility was set for May 16, 2026, with a payment date of June 4, 2026.
She noted that consolidated net profit for the quarter stood at ₹19,684 crore, registering a growth of 5.58% YoY, although it declined 6.39% sequentially due to pressure on margins and lower operating profit.
Operating profit came in at ₹27,704 crore, declining 11.45% YoY and 15.70% QoQ, reflecting moderation in core profitability despite strong loan growth.
On the business front, she said the bank continued to witness broad-based credit growth across segments. Whole bank advances increased 16.87% YoY and 5.32% QoQ, supported by strong domestic and overseas performance. Domestic advances grew 16.33% YoY, while foreign office advances rose 20.01% YoY.
She further highlighted that deposit mobilisation remained stable, with whole bank deposits rising 11.03% YoY and CASA deposits growing 9.53% YoY. The CASA ratio improved by 33 bps QoQ to 39.46%, indicating stable low-cost deposit accretion.
However, she pointed out that margin pressure persisted as net interest income increased only 4.13% YoY and declined 1.35% QoQ. The whole bank NIM for Q4 FY26 stood at 2.81%, down 18 bps QoQ, while domestic NIM declined to 2.93%.
According to the analyst, asset quality continued to improve, with the Gross NPA ratio declining to 1.49% and Net NPA remaining low at 0.39%. Credit cost moderated to 0.27%, although slippages increased slightly to 0.47%.
She added that the provision coverage ratio stood at 74.36%, while capital adequacy improved sharply to 15.40%, strengthening the bank’s growth and risk absorption capacity going forward.
Anshul Jain, Head of Research at Lakshmishree, said that SBI remains technically weak after forming a lower high on weekly charts, indicating fading upward momentum within the broader structure. The stock is sustaining itself below key daily moving averages, while the post-result's negative reaction reflects weakening institutional participation.
"Price action suggests a gradual drift toward the 50-week EMA placed near 972, which now emerges as a critical support zone. Unless SBI reclaims its short-term resistance band with strong volumes, rallies are likely to face selling pressure," he added.
Anshul noted that a breakdown below 972 could accelerate downside momentum, while only sustained closing strength above recent swing highs would negate the bearish setup.
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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