Sbin FY26 Annual Earnings Summary
3 quarters covered · ₹0 Cr revenue · ₹1,20,220 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Risks flagged during the year
GNPA in Xpress Credit rose to 1.2% on a flat book, though management attributes it to base effect and expects stabilization.
Q1 FY26 · mediumSupply chain disruptions from US tariffs could affect working capital and credit quality in export-oriented sectors, though SBI's direct exposure is minimal.
Q1 FY26 · mediumPrepayments of INR 12,000 crore and shift to CP market by corporates indicate pricing pressure, potentially limiting corporate credit growth.
Q3 FY26 · mediumCorporate loans typically carry lower yields; rapid growth could pressure NIMs despite management's confidence in pricing discipline.
Q3 FY26 · mediumManagement indicated cost of funds may not decline further, and full transmission of rate cuts may not materialize, limiting margin expansion.
Q3 FY26 · mediumGrowth in priority sector lending may fall short, requiring costly PSLC purchases, especially in small and marginal farmer segments.
Q4 FY26 · mediumAnalyst raised concern about stress in MSME space due to West Asia conflict; management acknowledged impact on clusters like Morbi but said overall exposure is minimal and credit cost guidance unchanged.
Q4 FY26 · mediumTransition to expected credit loss-based provisioning from April 2027 may impact profitability; management declined to quantify impact but expects smooth transition over four years.
Q4 FY26 · mediumShift of well-rated corporates from market to bank loans linked to T-bill has compressed yields; management plans to move loans to MCLR but execution risk remains.
Q1 FY26 · lowNIM may decline further in Q2 before recovering, driven by deposit repricing lag and CASA ratio decline.
Q3 FY26 · lowHardening yields could impact MTM on HFT/FVTPL books, though management sees limited impact given small book size.
What changed through the year
Q1 FY26 · NIM guidance of 3% for FY26
Management expects domestic NIM to be around 3% for the full year, with a U-shaped trajectory—declining in Q2 and improving from Q3 onwards.
Q1 FY26 · Credit growth guidance of 12-13% for FY26
The bank expects overall credit growth of around 12%, with potential upside to 13% as uncertainties clear.
Q1 FY26 · Cost-to-income ratio below 50%
Management aims to keep the cost-to-income ratio below 50% through the cycle, supported by productivity initiatives like Project SARAL.
Q1 FY26 · ROA above 1% and ROE above 15%
Structural targets of return on assets above 1% and return on equity above 15% through the cycle are reaffirmed.
Q3 FY26 · Credit growth guidance revised to 13-15% for Q4 FY26
Management raised the earlier 12-14% guidance to 13-15% for the current quarter, driven by strong momentum across all segments.
Q3 FY26 · Exit NIM of 3% for FY26 and 3% through cycles
Management reiterated NIM guidance of 3% for Q4 exit and long-term, with no significant upside expected.
Q3 FY26 · ROA guidance of 1% through cycles
Management maintained 1% ROA guidance, emphasizing consistency over cycles despite current outperformance.
Q3 FY26 · Cost-to-income ratio below 50%
Management reiterated target to keep cost-to-income below 50%, supported by operating leverage and digital initiatives.
Q4 FY26 · Domestic NIM above 3% for FY27
Management guided for domestic net interest margin to remain above 3% for the full year FY27, supported by stable repo rates and asset mix improvement.
Q4 FY26 · Credit growth of 13%-15% for FY27
Management expects credit growth in the range of 13%-15% for FY27, driven primarily by RAM (retail, agriculture, MSME) segments.
Q4 FY26 · Credit cost guidance of 50bps for FY27
Management reiterated credit cost guidance of 50 basis points for FY27, confident in asset quality despite potential West Asia conflict impact.
Q4 FY26 · Cost-to-income ratio below 50%
Management aims to keep cost-to-income ratio below 50% for FY27, with efforts to contain overheads and improve operational efficiency.