SBI Aims for Strong Asset Returns Amid Rate Challenges

The State Bank of India plans to maintain a return on assets over 1% despite potential challenges from a declining interest rate cycle. Chairman C S Setty emphasized margin protection through realignment of deposit rates to accommodate repo rate cuts. SBI is focused on sustaining profitability and asset quality.

The State Bank of India (SBI) is committed to ensuring a return on assets (RoA) exceeding 1% in the current financial year, despite anticipated difficulties from a declining rate cycle, as stated by Chairman C S Setty.

Setty highlighted the importance of aligning deposit rate adjustments with repo rate cuts to protect margins, stating that although interest margins might be pressured, asset returns will remain robust. The bank aims to achieve over 15% return on equity consistently through business cycles.

Reflecting on financial milestones, SBI's asset quality has seen improvement with gross non-performing assets decreasing below 2% and net NPAs falling below 0.5%. With a record high net profit and plans to reinforce customer service and branch networks, SBI is poised for stable growth despite external monetary pressures.

(With inputs from agencies.)