SBI shares decline as brokerages flag margin pressure
SBI shares fell as quarterly results showed margins dropped to 2.8%. Analysts warned rising funding costs may pressure earnings despite stable asset quality.
STATE BANK OF INDIA shares fell 4% on Monday after its quarterly earnings missed brokerage estimates. The stock dropped to 977.7 rupees, its lowest in six weeks, and was the biggest drag on the Nifty PSU Bank index, which fell 1.8%. Investors are weighing whether rising funding costs signal a tougher profitability cycle for the nation's largest public banks.
State Bank of India reported a net interest margin (NIM) of 2.8% on Friday, down from 2.98% in the previous quarter. JP Morgan analysts said NIM compression is visible as funding costs reprice faster, and earnings momentum could moderate in the coming quarters.
