SBI Q4 Results: The country's largest bank, State Bank of India (SBI) has released the results of the fourth quarter (Q4) of the financial year. In terms of figures, the bank has performed brilliantly and earned thousands of crores of rupees, but the stock market investors did not like this performance of the bank. On one hand the bank's profits have increased, while on the other hand there has been huge selling in its shares. It is natural to raise the question that when the bank is in profit, then why is there such panic in the stock market?
Bumper profits, yet market's expectations dashed
State Bank of India has registered an annual increase of 5.6 percent in its standalone net profit in the March quarter. The bank has earned a huge net profit of Rs 19,684 crore during this period. At first glance this figure seems very impressive, but the eyes of the stock market were looking for something else. According to data collected by Reuters-LSEG, experts had estimated that the bank's profit will cross Rs 20,312 crore. Similarly, the net interest income (NII) of the bank i.e. the main income from interest has also increased by 4.1 percent on an annual basis to Rs 44,380 crore, which was Rs 42,618 crore in the same period last year. Despite growth in profits and interest income, it lagged far behind market estimates. This is the reason why even after great earnings, an atmosphere of disappointment was seen on Dalal Street.
Heavy fall in shares, 'dividend' balm for investors
Failure to meet market expectations had a direct and immediate impact on SBI shares. During the trading session, SBI shares fell by almost 5 per cent to Rs 1,037.5. This sharp fall in the stock market has definitely shocked those investors who were expecting a big jump after the results. However, the bank has also made a big announcement to please its shareholders. The board of SBI has announced a handsome dividend of Rs 17.35 per share. Any investors who hold this share in their portfolio till May 16, 2026, will be entitled to this dividend. The bank will pay this dividend into the bank accounts of the shareholders on June 4, 2026. This is a big relief news for those long-term investors who have been associated with the bank for a long period.
Loan situation improving, but a problem is stuck here
The health of any bank is determined by how safe the loans given by it are and what is the asset quality. SBI has done excellent work on this front. The gross non-performing assets (GNPA) of the bank i.e. bad loans have come down to 1.49 percent from 1.57 percent in the last quarter. At the same time, net NPA remained stable at 0.39 percent. Talking in rupee terms, gross NPA has come down to Rs 73,452.5 crore, however, a slight increase has been seen in net NPA and it has reached Rs 18,830 crore.
Huge decline in earnings from treasury operations
'Provisioning' has played a big role in supporting the profits of the bank. The bank has kept only Rs 2,872 crore as provisioning in this quarter, which was Rs 6,441 crore at the same time last year. But everything did not go well for the bank. There has been a huge decline in the earnings of SBI from treasury operations. It has fallen directly to Rs 1,259 crore from last year's Rs 8,991 crore. According to Reuters report, due to increase in bond yield, the value of bonds held by banks decreases, which has a direct impact on the treasury income of SBI. Apart from this, other income of the bank has also fallen by about 29 percent to Rs 17,314 crore.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
-
Mother’s Day will be celebrated on this day in 2026, know when and who started it, what is its importance.
-
Tips and tricks to avoid situationship
-
Foreskin reconstruction is dividing penis doctors — inside promises, pitfalls
-
Supreme Court strict in Colonel Sophia Qureshi case: Strong rebuke to Vijay Shah, told MP government to follow the order of the court.
-
Kedarnath Yatra becomes more safe, hi-tech hospital opened for devotees
