{"id":633,"date":"2026-05-11T17:50:05","date_gmt":"2026-05-11T17:50:05","guid":{"rendered":"https:\/\/dailypakistannews.com\/?p=633"},"modified":"2026-05-11T17:50:05","modified_gmt":"2026-05-11T17:50:05","slug":"indias-sbi-sheds-over-11-billion-in-two-sessions-on-margin-squeeze-disappointing-earnings","status":"publish","type":"post","link":"https:\/\/dailypakistannews.com\/?p=633","title":{"rendered":"India&#8217;s SBI sheds over $11 billion in two sessions on margin squeeze, disappointing earnings"},"content":{"rendered":"<p><strong>BENGALURU: State Bank of India shed more than $11 billion in market value over two sessions on narrowing margins and a disappointing fourth-quarter earnings miss that brokerages warned could signal a tougher profitability cycle ahead.<\/strong><\/p>\n<p>Shares of India\u2019s largest lender by customers dropped 4.5% to a year-to-date low of 973.60 rupees on Monday, extending Friday\u2019s near-7% post-results fall.<\/p>\n<p>The selloff brought the stock down more than 10% in two sessions, wiping out $11.3 billion.<\/p>\n<p>NSE data showed the heaviest fresh call writing on SBI\u2019s 1,000 strike on Monday, signalling that investors expect any near-term rebound in the stock\u2019s price to likely be capped at that level.<\/p>\n<p>About 95 million shares changed hands over the two sessions, almost five-fold the 30-day average of 18.7 million.<\/p>\n<p>Analysts said the lender\u2019s fourth-quarter earnings miss reinforced concerns that Indian banks are entering a tougher profitability cycle, with rising funding costs beginning to erode lending margins.<\/p>\n<p>SBI on Friday reported a narrower net interest margin of 2.8% for the quarter, compared with 2.98% in the previous<\/p>\n<p>three-month period, and also missed analysts\u2019 profit estimate.<\/p>\n<p>\u201cNIM compression is becoming more visible as funding costs reprice faster,\u201d JP Morgan said on Monday, adding that earnings<\/p>\n<p>momentum could moderate in the coming quarters.<\/p>\n<p>\u201cCore earnings were underwhelming, with incremental margins tightening,\u201d Bernstein said, cautioning that upside catalysts may be limited without a stabilisation in margins.<\/p>\n<p>SBI\u2019s asset quality remained a key positive, with bad loans and credit costs staying benign, brokerages said, but warned it may not fully offset pressure on net interest income from margin compression.<\/p>\n<p>Nonetheless, analysts retained a constructive long-term view, citing the bank\u2019s strong balance sheet, scale and market leadership.<\/p>\n<p>The two-session selloff erased SBI\u2019s year-to-date gains, leaving the stock down 0.8% in 2026, though it still outperformed the benchmark Nifty 50\u2019s 8.8% drop.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BENGALURU: State Bank of India shed more than $11 billion in market value over two sessions on narrowing margins and a disappointing fourth-quarter earnings miss that brokerages warned could signal a tougher profitability cycle ahead. Shares of India\u2019s largest lender by customers dropped 4.5% to a year-to-date low of 973.60 rupees on Monday, extending Friday\u2019s [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan-news"],"_links":{"self":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=633"}],"version-history":[{"count":0,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/posts\/633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=\/wp\/v2\/media\/634"}],"wp:attachment":[{"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailypakistannews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}