State Bank of India Reports 5.5% Rise in Net Profit, Shares Drop 7.4% Amid Mixed Results State Bank of India (SBI) reported a 5.5% year-over-year increase in net profit for the March quarter, reaching ₹19,683.75 crore, according to standalone financial statements filed on stock exchanges. The bank’s net interest income (NII) also rose 3% to ₹1,23,097 crore, reflecting stable performance in its core lending activities. However, the results failed to meet investor expectations, leading to a sharp decline in SBI’s share price, which fell 7.4% intraday on May 8, 2026. The stock’s steep drop followed a mixed set of financial metrics. While SBI’s asset quality improved, with non-performing assets (NPAs) declining to 1.49% from 1.82% a year earlier, its treasury operations faced challenges. Treasury income dropped 23% YoY, attributed to lower gains from market activities. Additionally, provisions for bad loans fell 21% to ₹3,140 crore, signaling a reduction in loan defaults. Despite these improvements, investors remained unimpressed, as the bank’s net profit growth remained modest compared to expectations for single-digit growth in the January-March quarter. SBI’s net interest margin (NIM) stood at 2.81% for the March quarter, with domestic NIM at 2.93%. However, analysts warned that the NIM could face pressure in the coming months due to a repo rate cut by the Reserve Bank of India and rising costs of funds. The bank’s net interest income is projected to grow between 7-9% in the next quarter, supported by healthy loan book expansion. The results also included a significant dividend declaration. SBI’s board announced a dividend of ₹17.35 per equity share for the financial year ended March 31, 2026.#reserve_bank_of_india #state_bank_of_india #kalyan_jewellers #titan_co #ujjivan_small_finance_bank
