SBi prepares to click on the margins from additional interest rate discounts: CS Setty President

The State Bank in India, the largest general lender in the country, is preparing to pressure the margins because it expects 50 other basis points in politics by the Indian Reserve Bank. CS Setty President reported this pressure on the horizon during the post -profit press conference, and the pressure is due to the delay between re -cost and the cost of the deposit cost.

Setty explained that part of the lending portfolio of the Subcommittee for the implementation is reorganized immediately after the policy price is reduced, while deposits take about 12 to 18 months to reflect the change. He said: “This delay will be the effect of some pressure on the margin.”

Despite the margin concerns, Setty noticed that credit growth is still healthy in all sectors, albeit with some moderation. He stressed that SBI continues to lead the industry in the quality of assets.

SBI recorded a 10 % decrease in the independent net profit of the Q4FY25 at 18,642.59 rupees, compared to 20,698.35 rupees in the same quarter of last year. The net interest income reached 42777 rupees for a quarter.

On the basis of the entire year, the bank profit of the bank 1 crusher, grows 17.89 % on an annual basis to 1,10,579 rupees. For a quarter, operating profit increased by 8.83 % year on an annual basis to 31,286 rupees. The net net profit for SBI for FY25 has reached 70,901 rupees, which represents a 16.08 % increase on an annual basis.

The bank also reported an improvement in asset quality. The total NPA ratio was 1.82 %, a decrease of 42 YOY basis points, while the NPA 10 BPS YOY net decreased to 0.47 %.

Looking at the future, SBI reviewed its credit growth instructions for the fiscal year 26 to 12-13 %, a decrease from 14-16 %. The bank affirmed that the net interest margin expectations are closely related to the interest rates and expecting more mitigation in the coming months.