10 - 05 - 2026

SBI to sustain domestic NIMs above 3%, RoA over 1% in FY27: MOSL

By Our Markets Bureau
Mumbai, May 10, 2026

State Bank of India (SBI) expects to sustain its domestic net interest margins (NIMs) above 3% and return on assets (RoA) above 1% in FY27, according to a results update from Motilal Oswal Financial Services Limited (MOSL).

The report noted that the lender is also targeting a minimum return on equity (RoE) of 15% for its shareholders. For the fourth quarter of FY26, the bank reported a net profit of ₹19,680 crore, a 5.6% year-on-year (YoY) rise compared with the same period last year.

The quarterly performance was impacted by a 17-basis-point contraction in margins and treasury losses. Management indicated that corrective measures, including shifting the floating-rate corporate loan book from treasury-bill linked loans toward marginal cost of funds-based lending rate (MCLR) linked loans, are expected to support margins going forward.

Credit growth remained robust, expanding 17.2% YoY during the quarter. Management has guided for credit growth to continue at a rate of 13% to 15% in FY27.

Asset quality remained resilient, with the gross non-performing asset (GNPA) ratio recorded at 1.49% and the net non-performing asset (NNPA) ratio at 0.39%.

The bank’s digital footprint continued to expand, with about 66% of new savings accounts opened via the You Only Need One (YONO) SBI application during the financial year. Following the mixed quarterly results, MOSL trimmed its earnings estimates by 3% to 5% for FY27 and the 2028 FY28 but maintained a “BUY” rating on the stock with a target price of ₹1,300.