SBI Eyes Over 1% Return on Assets

FY26 to See Pressure Points in Few Areas

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STATE BANK OF INDIA reported a 10% y-o-y earnings decline with a 10% y-o-y operating profit growth in Q4FY25, offset by higher provisions (low base). The bank reported a stable net interest margin (NIM) (3.1%), comfortable loan growth (12% y-o-y) and lower slippages (0.4%). While investors focus on the bank defending its NIM as a key concern, we would probably have to look at its performance in light of the current external environment and focus on its ability to defend the RoA (return on assets) at 1% through other levers.