SBI Reports 5.6% Increase in Net Profit for Q4 Period

State Bank of India Reports 5.6% Year-on-Year Increase in Net Profit for Q4FY26

Mumbai: State Bank of India (SBI), the country's largest lender, reported a standalone net profit of ₹19.683.75 crore in the March quarter of FY26 (Q4FY26), a 5.6% year-on-year increase. The bank's net interest income (NII) in Q4FY26 increased by 4% year on year to ₹44,380 crore, demonstrating a steady growth trend.

Key Financial Indicators

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The bank's capital adequacy ratio (CAR) as on 31 March stood at 15.4%, higher than the 14.25% recorded a year ago and above the regulatory requirement of 12.3%. Furthermore, the asset quality of SBI improved during the quarter, with the gross non-performing assets (NPA) ratio falling to 1.49% in March, compared to 1.57% a quarter ago and 1.82% a year ago.

However, the outlook on India's economic growth and banks' credit growth remains clouded due to the ongoing West Asia war, which began at the end of February. The disruptions caused by the war, including an ongoing energy shortage due to supply disruptions through the Strait of Hormuz, are expected to have a significant impact on the economy. Although currently in a ceasefire, tensions escalated in May 2026 amid stalled negotiations.

The government rolled out emergency credit line guarantee scheme (ECLGS) 5.0 on Wednesday to address broad-based sector stress and the expected impact of the West Asia war on industries, especially fuel-linked manufacturing and aviation. SBI chairman C.S. Setty stated that over 11 million beneficiaries could potentially gain from ECLGS 5.0, with the bank identifying ₹70,000-₹80,000 crore of eligible borrowings under the scheme. On Friday, shares of SBI were trading at ₹1,020.55, down 6.5% from the previous close.