10 Aug 2026 Punjab Khabarnama Bureau : State Bank of India (SBI) shares gave up their early gains and fell more than 1% in trading despite the lender reporting better-than-expected first-quarter results.
The market reaction came even as brokerages remained positive on SBI, citing improving net interest margins (NIM), strong loan growth and healthy asset quality.
SBI Q1 Profit Beats Estimates
SBI reported a 10.2% year-on-year rise in net profit to ₹21,121 crore for the quarter ended June 2026, comfortably beating analysts’ expectations of around ₹19,102 crore.
Net interest income also increased nearly 15% to ₹46,992 crore, while domestic NIM improved to 3%.
Loan Growth Remains Strong
SBI’s gross loan book expanded 18.63% year-on-year, highlighting continued demand for credit.
The bank has retained its FY27 loan-growth guidance of 14-15%, pointing to broad-based expansion across major lending segments.
Why the Stock Fell Despite Strong Results
Despite the earnings beat, investors booked profits after the initial rise in the stock.
The decline suggests that some of the positive Q1 performance may already have been reflected in SBI’s valuation, while traders focused on near-term market positioning.
Brokerages Stay Positive
Several major brokerages have maintained a constructive view on SBI following the results.
Analysts have highlighted the bank’s improving margins, strong credit growth and resilient asset quality as key reasons for their bullish outlook. SBI has also been identified among the preferred banking picks by Motilal Oswal.
Asset Quality Improves
SBI’s gross non-performing asset ratio declined to 1.47%, indicating continued improvement in asset quality.
However, fresh loan slippages increased during the quarter, which remains an area investors will monitor.
Outlook
SBI’s Q1 performance has strengthened the case for its growth outlook, particularly with loan expansion and NIM showing improvement.
The immediate share-price weakness, however, reflects profit booking and market expectations rather than a deterioration in the bank’s core quarterly performance.