SBI Shares Slip on Margin Woes After Q4 Profit Rise
SBI Shares Slip on Margin Woes After Q4 Profit Rise
State Bank of India posts a 6% rise in Q4 profit, but shares slide nearly 7% as weak margins and lower treasury income overshadow earnings potential.
State Bank of India posted a 6% rise in fourth-quarter net profit, underscoring healthy lending growth, but its shares plunged nearly 7% in a single session—the steepest drop in two years. Investors weighed margin pressures and lower treasury income, offsetting the earnings beat and keeping the stock under pressure in Mumbai.
Analysts pointed to shrinking net interest margins and weaker other income as the main culprits. The weaker numbers stem from a decline in NIM and lower treasury income, with some recommending patience and potential accumulation on dips for long-term holders. If a rebound occurs, a near-term hurdle of ₹1,050-₹1,075 could cap gains.
The stock closed at ₹1,019.3, down 6.7% on Friday, extending a roughly 4.1% slide in the past month even as the Nifty 50 rose about 0.8%. Technical indicators suggest near-term weakness, with traders watching for a potential support zone around ₹970-₹990.
Meanwhile, SBI’s full-year profit crossed ₹83,299 crore, marking the second-highest annual corporate profit for the lender, even as the Q4 profit rose 6%. The bank’s robust loan growth sits alongside margin pressures and treasury losses that have cooled investor enthusiasm. Management remained confident about continued credit growth for the new fiscal year, though market participants will be watching margins and treasury income closely.
