Prime Highlight
- State Bank of India shares touched a record high after the lender posted strong quarterly earnings and raised its credit growth outlook.
- The upbeat results and guidance boosted investor confidence across the broader banking and financial sector.
Key Facts
- SBI’s standalone net profit rose 5% year-on-year to Rs 210.28 billionin the December quarter of FY2026.
- The bank revised its full-year loan growth guidance to 13%–15%, supported by steady margins and strong loan demand.
Background
Shares of State Bank of India, the country’s largest lender, touched a record high on Monday after the bank reported strong quarterly earnings and raised its credit growth outlook, lifting investor sentiment across the banking sector.
NSE-listed SBI shares rose as much as 6.6% to an all-time peak of Rs 1,130, outperforming both the benchmark Nifty 50 index and the Nifty Bank index. The rally followed the bank’s better-than-expected financial performance for the December quarter of fiscal 2026.
SBI earned Rs 210.28 billion in standalone net profit for the quarter, a 24.5% increase from last year. The bank grew its profit by getting more loans, earning more from interest, and increasing non-interest income. This strong profit shows that the bank is financially healthy and runs its operations well.
Net interest income, the main part of the bank’s earnings, rose about 9% to Rs 451.90 billion. Growth in retail and corporate loans boosted interest income, while the net interest margin stayed steady at 3.12%, showing careful pricing and cost control.
Encouraged by the momentum, SBI revised its credit growth guidance for the full financial year. The bank now expects loans to grow by 13% to 15% because households and businesses continue to borrow actively.
Market participants viewed the improved outlook as a positive signal for the broader banking industry, especially at a time when credit conditions remain supportive. Analysts said the results highlight SBI’s ability to benefit from India’s economic expansion while maintaining profitability.
The sharp rise in SBI shares also helped lift sentiment in the wider financial sector, as investors welcomed signs of stable margins, strong earnings growth, and an optimistic lending outlook from the country’s largest bank.