State Bank of India (SBI) extended its fall, slipping nearly 7% as investors reacted to weaker internals in the March quarter. The country’s largest lender reported a FY26 slippage ratio of 0.54% and credit cost of 0.37%, reflecting rising stress in certain loan segments.
For Q4, the whole‑bank net interest margin (NIM) stood at 2.81%, while domestic NIM was at 2.93%. This marked a decline from 3.11% in the previous quarter and 3.14% a year earlier, showing pressure on lending profitability. Credit cost for Q4 eased slightly to 0.27% compared with 0.29% in the December quarter, but slippages rose sharply.
Slippages for the quarter came in at ₹5,521 crore, up from ₹4,458 crore sequentially, highlighting fresh stress in the loan book. The Q4 slippage ratio was 0.47%, underscoring asset‑quality challenges despite overall provisioning discipline.
The fall in margins and rise in slippages weighed on investor sentiment, leading to a sharp decline in SBI’s stock price. Analysts noted that while credit costs remain under control, the narrowing NIM and higher slippages could pressure earnings in the near term.
SBI’s performance will be closely watched in coming quarters as the bank balances growth with asset‑quality risks in a competitive lending environment.
