SBI Surges with Record Profit: Bank Pays Rs 8,813 Crore Dividend to Government Amid Strong FY26 Earnings
State Bank of India (SBI) has demonstrated exceptional financial strength by paying a substantial dividend cheque amounting to Rs 8,813 crore for the financial year 2025-26. This payout was made to the Ministry of Finance, reflecting the public sector lender's robust performance and impressive business growth during FY26.SBI Chairman C S Setty officially handed over the dividend check to Union Finance Minister Nirmala Sitharaman, as confirmed by the Ministry of Finance on Monday. The decision highlights the bank’s solid profitability despite the demands of operating a massive financial institution.
Financial Highlights and Dividend Payout Details
The payout followed SBI reporting robust earnings across the fiscal year. Earlier, the Central Board of Directors had declared a dividend of Rs 17.35 per equity share for the financial year ending March 31, 2026. This significant commitment underscores the bank’s improved financial health.For FY26, SBI reported a net profit totaling Rs 80,032 crore. This represents a healthy year-on-year growth of 12.88 per cent. Furthermore, the bank posted a net profit of Rs 19,684 crore in the fourth quarter alone.
Operating Profit and Key Performance Indicators (KPIs)
SBI’s operating profit saw considerable gains during FY26, rising by 11.25 per cent year-on-year to reach Rs 1,23,015 crore. The bank maintained a healthy return on equity (ROE), which stood at 18.57 per cent for the year.Return on assets (ROA) was reported at 1.12 per cent for the full fiscal period. Net interest income (NII) also improved by 4.08 per cent compared to the preceding financial year. The overall bank net interest margin (NIM) for FY26 was recorded at 2.91 per cent, with a domestic NIM of 3.03 per cent.
Business Scale and Portfolio Metrics
SBI’s business scale across FY26 surpassed Rs 109 trillion. Deposits stood strong at Rs 59.8 trillion, while the advances portfolio reached Rs 49.3 trillion. The bank also showed a strong focus on rural growth, with its agriculture portfolio exceeding the Rs 4 trillion mark in the year under review.Asset Quality Improves Amid Robust Growth
A significant aspect of SBI's performance was the marked improvement in asset quality across the institution. The gross non-performing asset (NPA) ratio declined by 33 basis points compared to the previous year, settling at 1.49 per cent.The net NPA ratio also showed a positive trend, improving by 8 basis points to stand at 0.39 per cent. This improved credit quality complements the strong profitability and business growth metrics reported during FY26.
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