State Bank of India (SBI), the country’s largest lender, reported a 5.6% year-on-year increase in standalone net profit to ₹19,684 crore for the quarter ended March 2026, supported by improved asset quality and lower bad loans.
The bank had posted a standalone profit of ₹18,643 crore in the corresponding quarter of FY25. However, the earnings fell short of market expectations, leading to a sharp reaction in the stock market.
Following the results announcement, SBI shares declined nearly 6%, trading around ₹1,027.5 on the BSE Limited.
Despite profit growth, the bank’s total income declined to ₹1,40,412 crore during the March quarter, compared to ₹1,43,876 crore in the same period last year. However, interest income rose to ₹1,23,098 crore, up from ₹1,19,666 crore a year earlier.
SBI also reported a significant improvement in asset quality. The bank’s gross non-performing asset (GNPA) ratio improved to 1.49% as of March 2026, compared to 1.82% a year ago. Similarly, the net NPA ratio declined to 0.39% from 0.47%.
On a consolidated basis, SBI reported a marginal increase in net profit to ₹19,643 crore, compared to ₹19,600 crore in the year-ago quarter. Consolidated total income rose to ₹1,81,079 crore from ₹1,79,562 crore.
For the full financial year FY26, the bank posted a 13% rise in standalone profit to ₹80,032 crore, compared to ₹70,901 crore in FY25, reflecting steady growth in lending operations and improved balance sheet quality.
The bank’s board also approved a dividend of ₹17.35 per equity share for FY26. SBI stated that May 16 has been fixed as the record date for determining shareholder eligibility, while the dividend payment is scheduled for June 4.
SBI’s results come at a time when Indian banks are witnessing improving asset quality and steady credit growth, although pressure on margins and treasury income continues to remain a concern amid evolving interest rate conditions.
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