Mumbai, Aug. 8 -- State Bank of India, the country's largest lender, is expected to report muted earnings in the first quarter of FY26 as continued pressure on net interest margins (NIM) weighs on overall sector performance amid lower margin compression and potential treasury gains.

The bank is scheduled to declare results on Friday.

SBI's net profit in the June quarter was pegged at Rs.16,975 crore, according to Bloomberg consensus estimates of 24 analysts. The lender earned Rs.17,035 crore in Q1 of FY25.

"We expect operating profit to decline around 8% YoY (year-on-year) as we build NIM compression in the first quarter of FY26," Kotak Institutional Equities said in a report on 6 July. "We are building flat NII (net interest income) d...