State Bank of India Reports Record ₹80,000 Crore Profit Amidst Stable Loan Growth Projections
SBI posts record ₹80,000 crore profit; chairman says NIM has bottomed out, eyes 13–15% loan growth in FY27
The Economic Times
Image: The Economic Times
State Bank of India (SBI) announced a record annual net profit of ₹80,000 crore. Despite pressures on net interest income and margins, SBI Chairman CS Setty expressed confidence in stable net interest margins of 3% and projected a 13-15% loan growth for FY27, supported by strong deposit growth and a robust corporate credit pipeline.
- 01SBI reported a record annual net profit of ₹80,000 crore.
- 02Net interest margin (NIM) has stabilized at 3%, with no further rate cuts expected.
- 03Deposits grew by 11.4%, bolstering the bank's funding capacity.
- 04Loan growth is projected at 13-15% for FY27, reflecting broad-based demand.
- 05Global economic risks are being monitored, but no immediate stress is observed in the bank's portfolio.
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State Bank of India (SBI) achieved a historic annual net profit of ₹80,000 crore, marking a significant milestone for the bank. Chairman CS Setty addressed concerns regarding net interest income (NII) and net interest margins (NIM), confirming that NIM has stabilized at 3% for the fourth quarter of FY25 and is expected to maintain this level in FY27. The recent 25 basis point rate cut by the Reserve Bank of India (RBI) impacted the bank's External Benchmark Lending Rate (EBLR) loans, but Setty assured that margins would stabilize with no further rate cuts anticipated in the near term. SBI's deposits grew by 11.4%, with retail term deposits surging nearly 15%, providing a strong buffer for credit growth. The bank is targeting a 13-15% growth in loans for FY27, supported by a robust corporate credit pipeline and a shift from capital market borrowings. Despite global uncertainties, including the West Asian conflict, Setty noted that there is currently no visible stress in the bank's loan portfolio.
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SBI's strong profit and loan growth projections indicate a healthy banking environment, which could lead to more favorable loan terms for borrowers and increased investment opportunities in the economy.
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