Overview

• State Bank of India reported a 10% year-on-year drop in standalone net profit for Q4 FY25, driven by margin compression and increased provisions.
• SBI provided forward guidance for 12–13% loan growth in FY26, with stable asset quality but continued pressure on net interest margins.
• Kotak Mahindra Bank's Q4 FY25 results fell short of analyst expectations on net interest income, pre-provision operating profit, and net profit, leading to stock downgrades by multiple brokerages.
• Kotak's asset quality showed improvement, with slippages declining for the second consecutive quarter and the provision coverage ratio rising to 78%.
• Both banks experienced share price declines, with SBI down 1–2% and Kotak dropping 4–6%, reflecting investor concerns over valuation and near-term growth prospects.