Why State Bank of India Share Price Fell by 7% on May 8

By Ventura Research Team 3 min Read May 8, 2026

SBI Q4 FY26 results with share price fall and dividend update

Summary:
State Bank of India shares fell nearly 7% after reporting mixed Q4 FY26 earnings. While profit rose 5.58% YoY and FY26 net profit crossed ₹80,000 crore, pressure on margins, weaker non-interest income, and higher operating expenses weighed on investor sentiment. SBI also announced a dividend of ₹17.35 per share.

State Bank of India put out its Q4FY26 numbers and the results were a bit of a mixed bag. Gross advances crossed ₹49 lakh crore and full-year net profit went past ₹80,000 crore, up 12.88% over FY25. The market did not seem too impressed though, the stock fell close to 7% on May 8, 2026, closing at ₹1,018.40.

State Bank of India Quarterly Earnings Overview

Interest income for the March quarter was ₹1,23,098 crore, up 3% YoY from ₹1,19,509 crore in Q4FY25, and barely moved QoQ, edging up just 0.61% from ₹1,22,352 crore in Q3FY26. Net Interest Income came in at ₹44,380 crore, up 4.13% YoY from ₹42,618 crore. Sequentially it gave back a bit, down 1.35% from ₹44,987 crore in Q3FY26.

Non-Interest Income was where the quarter struggled. It dropped 28.94% YoY to ₹17,314 crore from ₹24,367 crore in Q4FY25, and that dragged Operating Income down to ₹61,694 crore, falling 7.90% YoY and 2.92% QoQ. Operating Profit came in at ₹27,704 crore, down 11.45% YoY. The sequential fall was sharper at 15.70%, with operating expenses jumping 10.77% QoQ to ₹33,990 crore. Provisions gave some relief, falling 36.56% YoY to ₹8,020 crore from ₹12,643 crore in Q4FY25, and down 32.23% QoQ. That kept the net profit from taking a harder knock. PAT for the quarter was ₹19,684 crore, up 5.58% YoY from ₹18,643 crore in Q4FY25, though it slipped 6.39% QoQ from ₹21,028 crore in Q3FY26.

State Bank of India Full Year FY26 Performance

Across the full year, the numbers hold up well. Net Interest Income grew 4.08% to ₹1,73,120 crore from ₹1,66,340 crore in FY25. Operating Profit rose 11.25% to ₹1,23,015 crore from ₹1,10,579 crore. Net Profit for FY26 was ₹80,032 crore, up 12.88% from ₹70,901 crore in FY25, not a bad outcome considering Net Interest Margin stayed under pressure through the year. Total Deposits grew 11.03% to ₹59,75,642 crore and Capital Adequacy moved up 115 bps to 15.40%. Whole bank Net Interest Margin for the year slipped 17 bps to 2.91%, while domestic Net Interest Margin came down 18 bps to 3.03%.

State Bank of India Margin Performance in Q4FY26

Margins stayed under pressure through the quarter. Whole bank Net Interest Margin fell to 2.81%, down 18 bps YoY from 2.99% in Q4FY25 and 17 bps QoQ from 2.98% in Q3FY26. Domestic Net Interest Margin came in at 2.93%, down 21 bps YoY and 18 bps QoQ. The Cost to Income Ratio moved to 55.09%, up 180 bps YoY and 680 bps QoQ, with the rise in operating costs being the main reason. Cost to Assets improved 31 bps YoY to 1.84% from 2.15% in Q4FY25, though it ticked up a bit on a sequential basis.

State Bank of India Advances and Segment Growth

Credit numbers were the brighter side of this result. Total Whole Bank Advances stood at ₹49,32,627 crore as of March 2026, up 16.87% from ₹42,20,703 crore a year ago. Within the domestic book, SME grew 20.99%, Agri was up 19.68%, Retail Personal rose 15.22%, and Corporate grew 14.83%. Total Domestic Advances reached ₹41,89,686 crore, up 16.33%, while Foreign Offices Advances grew 20.01% to ₹7,42,941 crore. The mix within domestic advances stayed largely unchanged; Retail Personal at 41.43%, Corporate at 34.00%, SME at 14.61%, and Agri at 9.96%.

State Bank of India Dividend Announcement

SBI's Central Board declared a dividend of ₹17.35 per share for FY26, which works out to 1,735% on the face value of ₹1 per share. The record date is May 16, 2026, and the payment is due on June 4, 2026.