SBI Shares Plummet 4.5% to 4-Month Low Amid Ongoing Post-Earnings Selloff

State Bank of India Shares Plummet to Four-Month Low

Shares of State Bank of India (SBI) continued their downward trend on Monday, May 11, dropping 4.5% to touch a four-month low of ₹975 per share. This decline marks the second consecutive day of selling, with the stock eroding nearly ₹1,11,683 crore in market capitalisation and pulling the lender's valuation below the ₹9 lakh crore mark to ₹8,99,925 lakh crore.

The selloff is attributed to the lender's earnings miss in the March quarter, announced on Friday during market hours. The Q4 and fiscal 2025-2026 results came in below street estimates, leading to an immediate impact on the stock. SBI suffered a sharp decline, ending the session with a steep 7% loss.

According to a report by Motilal Oswal, SBI reported a mixed quarter, impacted by a decline in Net Interest Income (NII) and contraction in Net Interest Margin (NIM) due to repo rate transmission, MCLR cuts, and migration of select corporate loans from MCLR-linked rates to T-bill-linked rates. Treasury profits were also weaker during the quarter amid a spike in bond yields. However, asset quality remained resilient overall, with the gross NPA ratio declining to 1.49% and net NPA remaining low at 0.39%.

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The brokerage firm trimmed its earnings estimates by 3% and 5% for FY27 and FY28, respectively, as it cut NIM estimates, partly offset by lower provisions. Despite this, it maintained its 'buy' rating on the stock with a target price of ₹1,300 per share.

Comparison of Brokerage Firm Estimates

JM Financial expects SBI to maintain a 1% Return on Assets (RoA) and an average Return on Equity (RoE) of 14% over FY26–28E. It broadly maintained its EPS estimates but revised its target price marginally to ₹1,200 from the earlier ₹1,210, valuing the stock at 1.3x FY28E Book Value Per Share (BVPS).

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Axis Direct also lowered its target price on SBI to ₹1,285 per share from the earlier ₹1,350 per share, while retaining its 'buy' rating.

SBI Q4 Results 2026

State Bank of India reported a 5.6% year-on-year (YoY) rise in standalone net profit for the January–March quarter of FY26 (Q4FY26) to ₹19,683.75 crore. In the corresponding quarter of the previous financial year, the PSU bank's profit stood at ₹18,643 crore. However, sequentially, or on a quarter-on-quarter (QoQ) basis, profit declined 6.4% from ₹21,028.15 crore reported in Q3FY26.

Operating profit declined 11.45% YoY and 15.70% QoQ to ₹27,704 crore. Net interest income (NII) increased just 4.13% YoY and declined 1.35% QoQ. The whole bank NIM for Q4FY26 stood at 2.81%, down 18 basis points QoQ, while domestic NIM declined to 2.93%.