SBI Faces Decline in Net Profit Amidst Economic Challenges

State Bank of India reported an 8.34% decline in its consolidated net profit due to falling net interest margins. Despite an increase in core net interest income and overall income, pressure from policy rate cuts and global economic uncertainties have impacted credit growth and investments.

State Bank of India (SBI), the nation's largest lender, announced an 8.34% drop in its consolidated net profit for the January-March quarter, totaling Rs 19,600 crore, a decrease from the previous year's Rs 21,384 crore.

This decline, attributed to a reduction in net interest margins, contrasts with a 2.69% growth in core net interest income to Rs 42,775 crore. Despite a 12% loan growth, the net interest margin fell by 32 basis points to 3.15%.

SBI Chairman C S Setty predicted ongoing pressure on net interest margins in the new fiscal year due to RBI's policy rate cuts, affecting loans tied to the repo rate. Meanwhile, the bank plans for a 12-13% loan growth, amidst challenges from global economic shifts and tariff wars.

(With inputs from agencies.)