New Delhi, May 18 -- Asset quality across India's banking sector remained broadly stable during the fourth quarter of FY26, although lenders have cautioned that geopolitical tensions in West Asia could pose risks to credit quality in the coming quarters, according to a report by Systematix Research.

The report noted that most banks under its coverage universe continued to maintain healthy asset quality metrics, with net slippage ratios remaining under control despite macroeconomic uncertainties and pressure on margins following the repo rate cut cycle.

"The slippages in the quarter were broadly in control with most coverage banks reporting sub 80bps of net slippage ratio (except IIB)," the report said.

According to the report, the bank...