SBI Share Price Declines 7% Following Q4 Earnings Release: Investment Decision Hinges on Market Sentiment.

State Bank of India Shares Plummet 6.66% Amid Mixed Q4 FY26 Performance

Shares of State Bank of India (SBI), the country's largest lender, declined sharply by 6.66% to ₹1,019 in Friday's trade on 8 May, marking one of the sharpest intraday falls in recent times. This decline resulted in a loss of nearly ₹67,040 crore in market capitalization, dragging the lender's valuation below the ₹10 lakh crore mark to ₹9.41 lakh crore.

The bank's March quarter performance failed to impress Dalal Street investors, despite reporting a mixed consolidated performance in Q4 FY26. The lender's consolidated net profit for the quarter stood at ₹19,684 crore, registering a growth of 5.58% year-over-year (YoY), although it declined 6.39% sequentially due to pressure on margins and lower operating profit.

The bank's operating profit came in at ₹27,704 crore, declining 11.45% YoY and 15.70% quarter-over-quarter (QoQ), reflecting moderation in core profitability despite strong loan growth. 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.

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Business Performance Comparison

Deposit mobilization 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, 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%.

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%. 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.

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Anshul Jain, Head of Research at Lakshmishree, noted 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.